Bitcoin shows a cup zone at the end marking the pattern.
If it follows this pattern, it would surpass its all-time high by the end of 2024.
With Bitcoin trading mostly in the $30,000 area for the past three weeks, its price is positioning itself in a typical uptrend continuation technical pattern. This is the graphical pattern known as “Cup & Handle,” said the market analyst, who identifies himself as SantinoCripto.
To understand this, it is important to understand that an asset is designed to create a pattern cup and handle If Its price moves in a “U” like a cup on a chart and then falls slightly. It also suggests that once this pattern is complete, the asset could recover from the pullback and continue to climb to a new high.
SantinoCripto has currently highlighted this with the following graphic bitcoin price shown how they form this mug pattern. This number started declining since late 2021 and bottomed out a year later. And since then it has risen until it is now positioned in front of the final part of that “u”.
According to the analyst, this means that if the price continues this pattern, in about 6 months we would see Bitcoin back to $69,000, its all-time high reached in November 2021. This theory derives from the fact that now the trading price was $30,000 just like half a year after reaching this peak.
The cup pattern suggests that an asset’s decline takes about the same amount of time as its rise. So if BTC took about a year to drop from $69,000 to $15,000-$16,000, its lows in the cycle in late 2022/early 2023, it would take a similar amount of time for it to recover to that level had.
So since we are already 6 months from the bottom of the price, By early 2024, Bitcoin is likely to hit $69,000, in case of completing this trophy figure. And if the “handle” pattern continues to form later, after reaching that price level, the cryptocurrency would experience a small decline and then continue to rise.
It should be noted that the cup and handle pattern is forming as a retest of the previous high, creating selling pressure for traders who bought an asset near this point. Because of this, there tends to be a price drop as the cup count is completed.
However, the decline is usually short-lived when there are buyers who remain interested in the asset despite its high value. This means that once the price clears this demand-led resistance, Prices are rising to new highs on the general optimistic mood.
SantinoCrypto commented If this cup pattern completes and reaches $69,000, a correction to $45,000-50,000 will occur. Such a price level acted as a support and resistance zone (solid low and high) in 2021, so in such a scenario it could test a bottom there. And he thinks it will start recovering from that and set a new high in mid-2024.
Bitcoin recently completed a lower cup and handle pattern
In a more short-term analysis, you can see that in recent times Bitcoin price has fully completed a cup and handle pattern. In fact, from May 2022 to April 2023, the price moved like a cup, then returned to $30,000 and then bounced back like a handle until June, from which it bounced as the chart shows.
This complete figurine with mug and handle makes one think of the market analyst identified as crypto rover The, If BTC breaks its current resistance, its next stop will be at $42,000. Due to the importance of this price level in the past, other analysts from CriptoNoticias are also reporting.