Bitcoin poised for 70 surge as BTC exhibits bullish giant cup and handle pattern
Bitcoin is currently facing a downturn, but technical analysis suggests that there may be some potential for an upward trend. According to a recent analysis by crypto trading expert TradingShot, Bitcoin’s one-week time frame chart shows a significant cup and handle (C&H) pattern, which began forming at the peak of the previous bullish cycle.
The cup and handle pattern is a bullish continuation signal that indicates potential price increases. However, this pattern is often overlooked by traders who are focused on short-term movements. Bitcoin’s chart shows that it is currently in the handle phase, forming a downward channel.
The critical factor in this analysis is determining which moving average (MA) period will provide support: the 1-day MA200 or the 1-week MA50. The 1D MA200 has provided early support during the current bull cycle, while the 1W MA50 has been a reliable support level since the breakout on March 13, 2023.
The analysis also highlights the expected percentage rise after the handle is complete. Assuming the 1D MA200 holds as the support, the next expansion leg could potentially propel Bitcoin to the $100,000 – $110,000 target zone, representing a potential upside of around 70% from the current levels.
However, despite the bullish price projection, Bitcoin still faces short-term bearish conditions and the threat of resetting the $60,000 support. The asset is currently experiencing fear, uncertainty, and doubt (FUD) amid continued sideways trading.
Moreover, Bitcoin is weighed down by ongoing outflows in the US spot exchange-traded funds (ETF). On June 20, there were net outflows from the ETFs, reaching $900 million.
As of the time of reporting, Bitcoin was trading at $63,940, having dropped over 2% in the last 24 hours and down 4.3% on the weekly timeframe. Over the past week, Bitcoin has shown a general decline in price with notable volatility, struggling to maintain higher levels and encountering resistance around $65,000 and support around $63,000.
It’s important to note that the content of this article should not be considered investment advice, as investing is speculative and carries risk.