- Bitcoin forms a Cup with Handle pattern, price at the tip of the handle.
- The Giant Cup with Handle pattern indicates a bullish trend for Bitcoin.
- Bitcoin’s price at $57,005, poised for a breakout to $240,000.
Traders and investors use different methods to analyze price movements of underlying assets. The Giant Cup with Handle is a popular technical indicator among Bitcoin traders.
The Cup with Handle pattern is a bullish continuation pattern that signals a potential upward trend. Typically, it forms after a strong price rally, followed by a period of consolidation. The pattern resembles a tea cup, with the “cup” being a rounded bottom and the “handle” a smaller consolidation phase.
The Cup with Handle Pattern Formation
The pattern typically begins with a price decline which creates the left side of the cup. After the price decline, the rounded bottom of the cup forms during the stabilization and gradual recovery period.
According to Trader Tardigrade, Bitcoin is now at the tip of the handle, ready for a breakout. The measured target for this breakout is $240,000 — 306.66% from the current price of $59,005. This price target is calculated based on the depth of the cup and the height of the handle.
Once the price of Bitcoin reaches the previous high, it consolidates and creates the handle. This handle typically slopes downward. According to experts, the slope signals a temporary pause before the next upward move.
The significance of the Cup with Handle pattern lies in its historical reliability. This pattern has been observed in various financial markets and has often led to substantial price increases.
The formation of the Giant Cup with Handle pattern in Bitcoin’s price chart is a bullish signal. With the price currently at the tip of the handle, the market is poised for a potential breakout.
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