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Legendary 'Cup and Handle' Pattern Appears on Bitcoin (BTC)

Published 06/17/2024, 07:39 AM
Updated 06/17/2024, 11:00 AM
© Reuters.  Legendary \'Cup and Handle\' Pattern Appears on Bitcoin (BTC)
BTC/USD
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U.Today - One of the strongest and most bullish patterns on the Bitcoin chart has arisen. The digital gold is in the process of painting the cup and handle pattern, a known formation that often leads to bullish parties. This pattern, historically a harbinger of significant price increases, might provide a sentiment boost.

There is a noticeable similarity between the chart from 2016 and 2024. Bitcoin created a similar cup and handle pattern in 2016 that ultimately resulted in a significant breakout and an extended bull run.

Should the past repeat itself, there may be a major upswing in Bitcoin prices soon. In spite of the general market volatility, Bitcoin has recently shown resilience. Bitcoin's price has been oscillating between important resistance and support levels recently.

Currently trading at roughly $66,000, BTC is still above both the 200-day EMA and the 50-day EMA, two critical support levels for bullish momentum. The consistent trading volume suggests a consistent level of interest. As long as it stays in neutral territory, Bitcoin may still move in either direction, according to the RSI.

On the other hand, a strong bullish signal is provided by the cup and handle pattern formation, which suggests a potential upward breakout. The way that Bitcoin has performed over the last few months has been noteworthy.

Bitcoin saw a dip following its peak, but it was able to find stability and bounce back. The narrative surrounding Bitcoin is still positive on the market due to growing institutional interest and adoption. If the aforementioned pattern plays out, Bitcoin might end up in a great place for a substantial reversal.

This article was originally published on U.Today

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