Cup and handle formation
Might be $18 soon
The cup should be rounded and resemble a U shape, not a sharp V.
The cup should not be overly deep. The base depth should be 12-35%.
The handle should be smaller than the cup. The handle is usually the pullback from the higher end of the cup. The pullback is usually about 1/3rd of the size of the prior advance. The handle should also be less than two-thirds the length of the cup below it. The low of the handle should not be more than 12% below the handle high.
The cup usually forms over a period of 1-6 months or even longer. The handle ideally forms over a span of 1-4 weeks or even higher depending upon the time period of the cup.
Volume should be high in the initial breakout followed by a low-volume consolidation. Volume should decrease as prices decline and remain lower than average in the base of the bowl.
When price breaks out of the handle's trading range, it signals a continuation of the prior trend.
The pattern is a form of (ascending) triangle
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