Cup-and-handle pattern suggests further decline in Bitcoin
Bitcoin has been trying to break above the $70,000 mark for several days now. Every time it gets close to its target, something new fills the market with fear and BTC fails the mission. It now feels like a video game where you almost killed the boss but missed and barely have a chance left. Let’s explore what Bitcoin technical analysis has to say.
Bitcoin shows a cup and handle pattern
Bitcoin’s weekly chart shows a cup and handle pattern. This pattern reflects the continuation of an uptrend once the handle is fully formed. Looking at the chart, it looks like the pattern is about to end, meaning the price increase is underway. However, it is quite possible that we will see a small pullback before Bitcoin begins its journey to another all-time high.
At the time of writing, Bitcoin price is recording a 1.77% decline from the previous day and is hovering near $63,093. The last key support is around $61,693, which means we can see another 2.24% price drop. Just two days ago, Bitcoin recorded a 7.79% price increase and reached a high of $64,988 before finally closing at $64,085.
Multiple signals in the daily chart
The daily Bitcoin chart looks more interesting than the weekly chart. Here we can see several indicators that suggest a rise in the near future. However, there is also a negative factor that suggests a pattern failure.
From March this year to today, Bitcoin’s movement has formed a falling channel pattern. This pattern, along with MACD’s clues, signals an impending price increase.
A negative signal is the death cross. The 200 moving average crossing above all other moving averages, including 50, supports the assumption of a pullback. Apart from that, everything is bullish. This includes the MACD line crossing above the signal line. The rise in green on the Bitcoin charts gives us hope that we are staying strong and the wait will soon be over.
outlook
Most signals suggest that we will soon see a sharp rise in the price of Bitcoin. August and September have historically been bearish months for Bitcoin. But it looks like BTC is changing this time. However, traders should not let their guard down as such bullish sentiment can be very damaging if the market turns down.
