CUP and HANDLE emerged in BTCUSD H1 outlook
2024-12-14
Category: None

BTC/USD Technical Analysis:

A Cup and Handle reversal pattern has emerged on the BTC/USD chart, suggesting a potential trend reversal. The pattern is characterized by a rounded bottom (cup) followed by a smaller consolidation (handle).

Key points:

1. Cup: The rounded bottom of the cup is visible at 94553, forming a potential bottom. This level marks a significant support area, where buyers have previously stepped in to push prices higher.
2. Handle: The handle of the pattern has formed at 99343, representing a smaller consolidation phase. This level marks a crucial resistance area, where sellers have previously pushed prices lower.
3. Resistance: The upper boundary of the cup is at 101630, which is currently being tested. A breakout above this level could confirm the pattern and lead to a rally in BTC/USD.
4. Current Price: 101620, just below the resistance level. The current price action suggests that buyers are attempting to push prices higher, but sellers are still present, trying to defend the resistance level.
5. Target: 105450, which is the measured move of the cup. This level represents a potential target for the rally, should the pattern confirm.

The Cup and Handle pattern is a bullish reversal pattern, indicating a potential trend reversal. A breakout above the 101630 resistance level could confirm the pattern and lead to a rally in BTC/USD, with a potential target at 105450.

Trading Implications:

- A long position could be considered above the 101630 resistance level, with a target at 105450.
- A stop-loss could be placed below the 99343 handle, to limit potential losses.
- Traders should monitor the price action closely, as a breakout above the resistance level could lead to a rapid rally.

Best Wishes Tom 😎
