This map illustrates the trends of three major assets—Bitcoin, Gold, and the S&P 500—all exhibiting the classic 'cup and handle' pattern. In simple terms, this pattern involves a price decline over a period, forming a large arc-shaped 'cup', followed by a brief pullback resembling a 'handle'. When the price breaks above the handle's resistance line, it generally indicates that a strong upward movement is imminent.
For comparison:
1. $BTC: A significant bottom has formed, currently at the end of the 'handle', feeling like a breakout is about to occur, with the arrow pointing straight up.
2. Gold: A breakout has been completed, with prices soaring, confirming the bullish strength of this pattern.
3. S&P 500: Following the same trajectory, after breaking out, it has continued to rise, with the market rhythm climbing steadily.
The 'cup and handle' pattern is relatively rare in the market and may be a bit challenging to understand, especially since price patterns can 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 out, accelerating the upward movement.
Price patterns are ultimately a subjective perspective of observing the market. The comparison of these three charts is just to make everyone aware of this concept; actual operations should also consider other factors for judgment.