- BTC forms a bullish giant Cup and Handle pattern, signaling a potential bullish continuation.
- The C&H pattern forms after a strong rally, with a rounded bottom (the cup) followed by a smaller consolidation (the handle).
- Despite the bullish projection, Bitcoin faces short-term bearish conditions. Social media FUD and recent selloffs pose risks.
Bitcoin has formed a giant cup and handle (C&H) pattern, as the post below suggests. This pattern is a bullish continuation signal that resembles a teacup on a chart.
$BTC [3D] – Update of Cup with Handle targeting $300k+ 🧨👀 pic.twitter.com/P8DowgQeAA
— Gert van Lagen (@GertvanLagen) July 1, 2024
Formation of the Cup and Handle Pattern
Initially, the price drops and then rises to form a rounded bottom—the cup. Following the cup, there’s a smaller downward move—the handle. After the handle, the price resumes its upward trajectory.
The critical factor lies in which moving average (MA) period will provide support — the 1-day MA200 (1D MA200) or the 1-week MA50 (1W MA50). The 1D MA200 previously offered early support during the bull cycle.
This support zone acted as a strong rebound point in March 2023. Meanwhile, the 1W MA50 has been a reliable support level since the breakout in March 2023.
Assuming the 1D MA200 holds as support and the handle completes at this level, the next expansion leg could propel Bitcoin to the $300,000 target zone. This represents a potential upside of around 379.3% from the current price ($62.3K).
Short-term Bearish Conditions
While the projection is bullish, Bitcoin faces short-term bearish conditions. The threat of resetting the $60,000 support looms due to various factors. For instance, cryptocurrency grapples with fear, uncertainty, and doubt (FUD) on social media platforms. Additionally, the recent massive selloffs may fuel a bearish market sentiment.
Bitcoin’s cup with handle pattern suggests that the next target could be $100,000. However, as always, the crypto market can be volatile, so it’s advisable to do due diligence before executing any trade.
