1. Chart Formation:
• Formation Type: Cup & Handle formation is present. This is a strong continuation formation that usually gives an uptrend signal.
• Minimum Target: An increase as deep as the cup can be expected. This generally indicates the target from the breakout point.
2. Target and Prices:
• Short Term Target: After the breakout, the price is expected to reach the 1070 - 1246 USD band, which are the 1.272 and 1.618 Fibonacci levels.
• Long Term Target: The price could potentially rise to 1663 USD levels.
3. Support and Resistance Levels:
• Supports:
• 550 USD: The price is struggling to break through this level.
• 500 - 520 USD: Works as a strong demand zone.
• Resistors:
• 750 USD: The main resistance level (upper limit of the cup).
• Above, 900 USD and then 1000 USD can be seen as psychological resistance.
4. Indicators:
• Volume: Increase in volume supports the confirmation of the formation.
• RSI (Relative Strength Index): It is necessary to check for possible overbought levels.
• Fibonacci: 1.272 and 1.618 levels are marked as strong target areas.
5. Trend Direction:
• The general trend is upward. If the price breaks out of the formation, it is expected to enter a strong uptrend.
6. Strategy:
• Entry Point: A volume close above the 550 USD level should be expected.
• Stop Loss: In case of a closing below 500 USD, exit may be considered.
• Profit Taking: Profit taking can be done gradually at the levels of 750 - 1070 - 1246 USD.
7. Risk Management:
• If the formation fails, falling below the support levels may increase the selling pressure. Therefore, an appropriate stop loss level should be determined.
8. Conclusion:
The Cup & Handle formation on this chart provides a potentially strong bullish signal. However, it is important to consider market conditions, other macroeconomic factors, and the overall crypto market direction before investing.
