Key facts:
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The cup with handle pattern heralds bullish movements for financial assets.
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Currently, Bitcoin would be in the “handle” part of the technical pattern.
According to the platform TradingViewthe price of bitcoin (BTC) could reach $125,000 in this bullish cycle. This is predicted by the automatic detector of the pattern known as “cup and handle”.
At the moment, BTC would be in the “handle” part of this patternwhich could anticipate a significant continuation of the upward trend.
The “cup with handle” pattern is a highly valued graphic figure in technical analysis, since It usually indicates a continuation of the previous bullish trend.
This pattern is first formed with the “cup”, where the asset price experiences a decline, forming the left side of the cup. Subsequently, a gradual recovery occurs until reaching a new high, slightly higher than the previous one, creating a rounded shape.
The price then pulls back slightly, forming a pause or consolidation that resembles the “handle” of the cup. If the price breaks above the cup’s high, the pattern is considered complete and the asset is ready to continue its ascent.
In this case, the target price that it sets TradingView It is $125,000 for bitcoinas seen in the following graph:
BTC price with a cup-with-handle pattern. Source: TradingView.
Besides, TradingView It also allows for the automatic detection of the bearish version of this pattern, known as the “inverted cup with handle.” However, in this case, the outlook is clearly bullish for Bitcoin.
More bullish outlook for bitcoin
As bitcoin remains in a corrective sideways range, analytics and trading group Made Easy Finance also forecasts a bull run in 2024, expecting a six-week window for two key events to occur that have driven the asset to new historical highs in previous cycles, as it has reported CryptoNews.
The first event is the waiting period of five to six months after the halvinghalving emissions of bitcoin which occurs every four years.
Historically, BTC has needed that time to recover its previous highsand then typically spends another six months reaching new records.
The second event that Made Easy Finance anticipates is the Coppock Curve, an indicator used to identify bullish reversals. This indicator measures the 10-period weighted moving average over two time periods, and When it changes from negative to positive values, it is interpreted as a bullish reversal signal..
Although Made Easy Finance sees upside potential for bitcoin, suggesting that the current market could offer returns of 2 to 3 times its current value, taking its price to $100,000, this increase would not be as significant as the one it predicts. TradingView.
However, both projections are encouraging for Bitcoin investors, who see in these analyses a positive signal for the future of the financial asset.
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