TL;DR
- Bitcoin is forming a “cup and handle” pattern on its weekly chart, signaling a potential bullish move according to technical analysts.
- The pattern is currently in the “Handle” phase, characterized by a descending channel, whose completion could indicate a potential increase of up to 70% from current levels.
- Key levels to watch are the daily MA200 and the weekly MA50, historically important as supports during previous bull cycles.
Amidst crypto market volatility, technical analysts have identified a particular pattern on the weekly chart that could indicate bullish potential for Bitcoin (BTC). According to a recent analysis published on TradingView by cryptocurrency trading experts, BTC is forming what is known as a “cup and handle” (C&H) pattern, starting from the highest point of the previous bull cycle.
This pattern, known for its bullish continuation signal, has been taking shape over an extended period, drawing attention for its precision and symmetry in Bitcoin’s chart. Currently, BTC is in the “Handle” phase of the C&H pattern, represented by a descending channel that is in the process of completion.
The key to determining Bitcoin’s next move lies in the effectiveness of two moving averages: the daily MA200 and the weekly MA50, which have historically acted as crucial support levels during bull cycles. For instance, the daily MA200 proved to be an effective early support in March 2023, while the weekly MA50 has provided reliable support since the breakout in September of the same year.
Challenges Ahead for Bitcoin
Furthermore, the analysis has highlighted a pattern of expansion following the lows of previous bear cycles, where BTC has experienced significant value increases, each slightly lower than the previous one. Based on these precedents, experts suggest that if support at the daily MA200 holds and the Handle completes, Bitcoin could target a price zone between $100,000 and $110,000 in its next bullish phase, representing a growth potential of 70% from current levels.
Despite optimistic projections, Bitcoin faces immediate challenges stemming from current bearish conditions and general concerns surrounding the cryptocurrency, including fear, uncertainty, and doubt (FUD) persisting in the markets. Additionally, ongoing outflows of capital from US-listed exchange-traded funds (ETFs) have contributed to recent downward pressure on BTC, underscoring the importance of closely monitoring these factors as the market evolves and defines its direction
