The world of cryptocurrency is currently abuzz with the technical movements of Bitcoin, hinting at a potential surge 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,” a pattern that is highly regarded for its predictive accuracy and bullish implications.
The “cup with handle” pattern is easily recognizable due to its resemblance to a cup of tea on financial charts, serving as a classic indicator of a bullish trend continuation. This pattern typically starts with a price drop, followed by a rebound that forms a rounded bottom, or the “cup,” and then a minor decline, creating the “handle,” before another upward movement.
Following the formation of the handle, a surge in bullish sentiment and buying activity usually pushes the price past the resistance level set by the top of the cup. This breakout not only confirms the pattern but also sets the stage for potential price increases in the future.
To estimate Bitcoin’s price target after the breakout, analysts measure the depth of the cup and project this distance vertically from the breakout point. For Bitcoin, with a low point of around $15,500 from a peak of $69,000, there seems to be significant room for growth.
Looking ahead, Gert van Lagen has expressed optimism, stating, “BTC [3D] – Cup with Handle aiming for US$ 300 thousand. The price broke out of the bull flag and retested successfully for about four weeks.”
As of the latest update, Bitcoin was trading at US$67,780.92, marking a 0.1% increase in the past 24 hours.
Please note: The opinions shared in this article are purely for informational purposes and should not be considered as financial or investment advice. Trading or investing in cryptocurrencies carries inherent risks that could lead to financial losses.
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