The world of cryptocurrency is currently experiencing a surge in technical activity surrounding Bitcoin, indicating a potential significant increase in its value. Analyst Gert van Lagen has pointed out an interesting pattern on the three-day chart of Bitcoin (BTC/USD) known as the “cup with handle,” which is widely regarded for its accuracy in predicting bullish trends.
The “cup with handle” pattern is easily recognizable due to its resemblance to a teacup on financial charts, serving as a classic indicator of a bullish trend continuation. This pattern typically begins with a price drop, followed by a rebound that forms a rounded bottom, representing the “cup,” and a slight decline known as the “handle,” before another upward movement.
Following the handle phase, the prevailing bullish sentiment and buying pressure usually drive the price above the resistance level set by the top of the cup. This breakout not only confirms the pattern but also sets the stage for potential future price increases.
By calculating the post-breakout price target of Bitcoin, analysts take into consideration the depth of the cup and project this distance vertically from the breakout point. In the case of Bitcoin, a low point of $15,500 from a peak of $69,000 indicates a substantial potential for upward movement.
In light of the current situation and future outlook, Gert van Lagen remarked, “BTC [3D] – Cup with Handle aiming for US$ 300 thousand. The price broke out of the bull flag and retested successfully for about four weeks.”
As of the time of writing, the price of BTC stands at US$67,780.92, showing a 0.1% increase in the last 24 hours.
Please note: The opinions expressed in this article are for informational purposes only and should not be considered financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
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