This chart illustrates the trends of three major assets—Bitcoin, Gold, and the S&P 500—all displaying the classic 'cup and handle' pattern. Simply put, this pattern involves a price decline over a period of time, forming a large arc-shaped 'cup', followed by a brief pullback, resembling the 'handle'. When the price breaks through the upper resistance line of the 'handle', it typically indicates that a strong upward movement is imminent.
Let's compare:
1. $BTC: A major bottom has formed, currently at the end of the 'handle', feeling poised to break through, with an arrow pointing straight up.
2. Gold: A breakout has occurred, with prices soaring, confirming the bullish strength of this pattern.
3. S&P 500: Following the same path, it has continued to rise after the breakout, with the market rhythm moving steadily upward.
The 'cup and handle' pattern is relatively rare in the market, and it may be a bit difficult to understand, especially since price patterns can often be somewhat subjective. However, it doesn't need to be overly complicated; you can break it down into multiple 'head and shoulders' patterns. The overall idea is to first establish a base, then pull back, and finally break through, accelerating the upward trend.
Price patterns are ultimately a subjective perspective on market observation, and the comparison of the three charts above helps everyone understand that this phenomenon exists, but in actual operations, it is necessary to consider other factors for judgment.