Recent technical analysis has identified a cup and handle pattern indicating significant bullish signs.
In an analysis shared on TradingView on June 21, crypto trading experts highlighted a giant cup and handle pattern on Bitcoin’s one-week time frame chart.
This pattern, which started forming at the peak of the previous bull cycle, is a bullish continuation signal suggesting potential price increases.
Despite this signs, the cup and handle pattern seems to be ignored by lots of traders shorting the market. Currently, Bitcoin is in the handle phase of the cup and handle pattern, which is characterized by a downward channel.
The analyst emphasized the importance of determining which moving average (MA) period will provide support: the 1-day MA200 (1D MA200) or the 1-week MA50 (1W MA50).
The 1D MA200 offered early support during the current bull cycle and was a strong rebound point in early March.
Meanwhile, the 1W MA50 has consistently been a reliable support level since a breakout in mid-March 2023, with prices nearing this MA in mid-September 2023.
The cup portion of the cup and handle pattern formed from early 2022 to mid-2023, followed by the handle forming through a descending channel into 2024.
See Also: Massive Bitcoin Whales Transactions
Bitcoin’s Next Target After The Cup and Handle Pattern
An important aspect of this analysis is the projected percentage increase following the handle’s completion.
Since the bear cycle bottomed in November 2022, Bitcoin has experienced three upward movements, each ranging between +91% to +99%. These expansion legs have been slightly shorter, decreasing by about 4% to 5% each time.
Assuming the 1D MA200 holds as support and the handle completes at this level, analysts predicts that the next upward move could drive Bitcoin to the $100,000 – $110,000 range. This target represents a potential 70% increase from current levels.
Despite the optimistic price forecast, Bitcoin faces challenges in overcoming short-term bearish conditions.
Bitcoin is under pressure to maintain the $60,000 support level amidst prevailing fear, uncertainty, and doubt (FUD) in the market.
On-chain analysis platform Santiment highlighted that Bitcoin has been experiencing significant FUD on social media, indicating that investors are scared of a possible dump.
Additionally, Bitcoin is affected by continuous outflows from US spot exchange-traded funds (ETF). On June 20, it was reported that ETFs had net outflows for the fifth consecutive day, totaling $900 million.
As of the time of reporting, Bitcoin was trading at $63,940, reflecting a decline of over 2% in the last 24 hours. On a weekly basis, Bitcoin is down 4.3%.
Throughout the past week, Bitcoin has experienced a general price decline and notable volatility, struggling to maintain higher levels. It has encountered resistance around $65,000 and found support around $63,000.
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