- Bitcoin is forming a cup and handle pattern, indicating potential for a significant price breakout.
- The next key resistance level to watch is the neckline at around $72,000.
- A successful breakout above the neckline could trigger a steep upward price movement.
The Bitcoin price is hinting at a significant rally through one of the most recognizable patterns – cup and handle. This bearish technical pattern is known as determining potential large upward movement in price once key levels are crossed. Bitcoin price formation explainable in the context of this formation structure is at the final stage as can be seen from the attached chart and Bitcoin price graph that shows the asset approaching a key breakout point.
Bitcoin’s Cup and Handle Pattern
The ‘cup’ shape of the pattern shows the stock which took several years to go down and come up to a round pattern. This base-building phase usually depicts a phase in the market accumulation and strength reconstruction most especially after market correction. The part of the pattern corresponding to the so-called ‘handle’ comes into operation after the formation of the cup as traders take a step back as a result of the recent advance.
In Bitcoin’s case, the handle is a recurring pattern where the price has already shaped, and has only recently broken up through the short-term bearish trend. The next important level to watch is the neckline, a resistance level drawn horizontally at the top of the cup formation. This neckline, that lies at around $940, is the crucial level. Thus,if Bitcoin can decisively breach in the above manner, would justify confirmation of the pattern and provide further potential for advance.
Possible Breakout.
Purchasers have pointed out that failing the neckline, there is likely to be a steep upsurge for Bitcoin, with many individuals expecting the prices to reach upwards. This brings a fountain of buying pressure as most people in the market notice this cup and handle breakout and seek to take position as they expect the stock to go up.
This technical pattern is a clear indication of a bullish trend in the price of Bitcoin. Factors outside the trend such as the macroeconomic factors and the regulatory concerns may sway the price of bitcoin in the next one to six months.The cup and handle pattern is positive for the Bitcoin fans and suggests that the price may jump significantly higher.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
