⚡️ Bitcoin to skyrocket? Historic #BTC cup and handle pattern spotted

Over the last six months, Bitcoin (BTC) has been trading in a range that is getting progressively tighter. During this period, prices have ranged from a high of $73,100 to a brief low of $53,960 — as of press time, the world’s largest cryptocurrency has shed 11.78% of its price, taking a notable bite out of the 40.10% year to date (YTD) rise.

In a TradingView post on August 27, technical analysis expert and trader MetaShackle suggested that “BTC is forming an absolutely massive Cup & Handle on the Daily/Weekly chart. There has never been a formation like this in the history of crypto, and it’s sure to be an incredible run to levels that will shock the world.”

🔸 What is a cup and handle pattern?

A ‘cup and handle’ is a long-term, bullish chart pattern that traders use to find opportunities when an asset’s price will break out to the upside. Like with all chart patterns, the name is a node to its shape — with the pattern consisting of a ‘cup’ with a rounded bottom, followed by a smaller reversal to the downside which acts as the ‘handle’.

There are a couple of ways to determine how legitimate the pattern is. In general, the more even the cup, the better — and the handle should not retract to more than one-third of the cup’s depth. Should the handle retract to half the cup’s depth, the chart pattern is considered false.

In terms of entry points, traders use a simple rule of thumb — price targets are set by taking the depth of the cup and adding it to the point where the handle breaks its resistance level.

🔸 Is a Bitcoin breakout coming?

Although it is too early to tell, MetaShackle’s findings cannot be discounted. The cup and handle pattern is most often used with a weekly trading chart, as MetaShackle has done — and the pattern has been playing out over a long period, with the cup beginning on November 1, 2021, and the handle starting on April 1, 2024.