Bitcoin poised for a 70 increase as BTC exhibits a bullish giant cup and handle pattern
I will rewrite the article while retaining the general semantics and accuracy of the original content. Here it goes:
Bitcoin (BTC) is currently facing a bearish market, but technical analysis suggests that there is potential for an upside. According to a recent analysis by TradingShot, a crypto trading expert, Bitcoin’s one-week time frame chart shows a giant cup and handle (C&H) pattern that began forming at the peak of the previous bull cycle. The cup and handle pattern is a bullish continuation signal that indicates potential price increases. However, traders often overlook it in favor of short-term movements. Currently, Bitcoin’s chart shows it in the handle phase, forming a channel down.
The critical factor in this analysis is which moving average (MA) period will provide support: the 1-day MA200 (1D MA200) or the 1-week MA50 (1W MA50). The 1D MA200 provided early support during the current bull cycle and served as a strong rebound point during the week of March 6, 2023. On the other hand, the 1W MA50 has been a reliable support level since the breakout on March 13, 2023, coming close to the price action around the week of September 11, 2023.
The cup formed from early 2022 to mid-2023, followed by the handle forming through a downward channel into 2024. Assuming the 1D MA200 holds as the support and the handle completes at this level, the next expansion leg could propel Bitcoin to the $100,000 – $110,000 target zone. This represents a potential upside of around 70% from the current levels.
Despite the bullish price projection, Bitcoin still faces short-term bearish conditions. The cryptocurrency is increasingly facing the threat of resetting the $60,000 support and is currently experiencing fear, uncertainty, and doubt (FUD) amid continued sideways trading. On-chain analysis platform Santiment indicated that Bitcoin has suffered an “extended level of FUD” on social media platform X, and investors are likely fearful or disinterested.
At the same time, Bitcoin is weighed down by ongoing outflows in the US spot exchange-traded funds (ETF). June 20 marked the fifth straight day of net outflows from the ETFs, which hit $900 million. As of reporting, Bitcoin was trading at $63,940, having plunged over 2% in the last 24 hours. On the weekly timeframe, Bitcoin is down 4.3%. Over the past week, Bitcoin has shown a general decline in price with notable volatility, struggling to maintain higher levels, encountering resistance around $65,000 and support around $63,000.
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