Bitcoin Cup & Handle Pattern - Huge Bullish Breakout Incoming
On the Bitcoin weekly chart, we’re currently witnessing the formation of a classic cup and handle pattern, a powerful continuation pattern signaling a potential bullish breakout. This setup suggests a major move to the upside is on the horizon.
Bitcoin has formed a rounded bottom that began several weeks ago, indicating a period of consolidation after a downtrend. This rounding shape reflects diminishing selling pressure, followed by a gradual increase in buying interest.
The handle is now forming through a slight pullback or consolidation. This temporary decline serves to shake out weak hands, allowing for a solid base before the anticipated breakout. The declining volume during this phase also aligns with the handle's structure, indicating reduced volatility and coiling action.
- The key resistance level to watch is the rim of the cup, approximately around the 70k mark
- A daily close above this level on strong volume would confirm the breakout, signaling the start of a powerful upward trend.
The measured move from the bottom of the cup to the rim provides a bullish target of approximately $70 to 85k, marking a potential gain of 25% from the breakout point.
- **RSI: The RSI is sitting just below the overbought region, with room to move higher. A breakout above 70 on the RSI would further confirm bullish momentum.
- **MACD: A bullish crossover on the MACD indicates that momentum is shifting upward, supporting the bullish thesis.
- **Volume: Keep an eye on increasing volume as the handle completes. A volume surge on the breakout would be a critical confirmation signal.
- Stop-loss: Place a stop-loss below the handle around 51k or near recent lows to manage downside risk.
- Invalidation: The pattern would be invalidated if Bitcoin drops below the lower boundary of the handle around $49,050 with volume and candlestick closure, signaling that further downside could be in play.
Bitcoin’s cup and handle pattern is aligning for a potential explosive move to the upside. With momentum indicators supporting the pattern, this could be an ideal time for bulls to position themselves for the next leg higher.
**#BTC #Bitcoin #Crypto #CupandHandle #TechnicalAnalysis #BullishBreakout**
Bitcoin has formed a rounded bottom that began several weeks ago, indicating a period of consolidation after a downtrend. This rounding shape reflects diminishing selling pressure, followed by a gradual increase in buying interest.
The handle is now forming through a slight pullback or consolidation. This temporary decline serves to shake out weak hands, allowing for a solid base before the anticipated breakout. The declining volume during this phase also aligns with the handle's structure, indicating reduced volatility and coiling action.
- The key resistance level to watch is the rim of the cup, approximately around the 70k mark
- A daily close above this level on strong volume would confirm the breakout, signaling the start of a powerful upward trend.
The measured move from the bottom of the cup to the rim provides a bullish target of approximately $70 to 85k, marking a potential gain of 25% from the breakout point.
- **RSI: The RSI is sitting just below the overbought region, with room to move higher. A breakout above 70 on the RSI would further confirm bullish momentum.
- **MACD: A bullish crossover on the MACD indicates that momentum is shifting upward, supporting the bullish thesis.
- **Volume: Keep an eye on increasing volume as the handle completes. A volume surge on the breakout would be a critical confirmation signal.
- Stop-loss: Place a stop-loss below the handle around 51k or near recent lows to manage downside risk.
- Invalidation: The pattern would be invalidated if Bitcoin drops below the lower boundary of the handle around $49,050 with volume and candlestick closure, signaling that further downside could be in play.
Bitcoin’s cup and handle pattern is aligning for a potential explosive move to the upside. With momentum indicators supporting the pattern, this could be an ideal time for bulls to position themselves for the next leg higher.
**#BTC #Bitcoin #Crypto #CupandHandle #TechnicalAnalysis #BullishBreakout**
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