{"id":36131,"date":"2024-02-15T08:52:55","date_gmt":"2024-02-15T12:52:55","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=36131"},"modified":"2024-02-15T08:52:55","modified_gmt":"2024-02-15T12:52:55","slug":"bitcoin-price-rally-to-75000-imminent-due-to-massive-cup-and-handle-pattern","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2024\/02\/15\/bitcoin-price-rally-to-75000-imminent-due-to-massive-cup-and-handle-pattern\/","title":{"rendered":"Bitcoin Price Rally To $75,000 Imminent Due To Massive Cup And Handle Pattern"},"content":{"rendered":"

Matt Dines, the Chief Investment Officer at Build Asset Management, has identified<\/a> a classical \u2018Cup and Handle\u2019 pattern in the Bitcoin (BTC) price chart, which he believes could signal an impending rally to $75,000. This technical formation is often considered a strong bullish signal and is closely watched by market analysts and traders.<\/p>\n

Bitcoin Price Validates Cup And Handle Pattern<\/h2>\n

The \u2018Cup\u2019 part of the pattern, resembling a bowl or rounding bottom, began forming in March 2022 when the price plunged below $48,000 and entered one of the longest Bitcoin bear markets<\/a>. The pattern reached its lowest point at approximately $17,600, signifying a strong support level for Bitcoin.<\/p>\n

The left side of the pattern shows a rounded bottom resembling a \u201ccup.\u201d It forms when the price initially declines, then consolidates, and finally starts to rise again. Since hitting this bottom, Bitcoin\u2019s price has made a steady recovery, mimicking the right side of the cup, indicating a bullish reversal of the previous downtrend.<\/p>\n

\u201cThe saucer or the \u2018cup\u2019 signifies a consolidation period, a pause in the downward trend, before the price begins to rise back up to the test resistance levels,\u201d Dines explained. The recovery to the initial resistance line completes the \u2018cup\u2019 portion of the pattern. The Bitcoin price completed this step in early January<\/a> this year.<\/p>\n

The subsequent \u2018Handle\u2019 is represented by a moderate retracement following the recovery, which forms a small dip or pullback from the peak. This handle is identified by a slight downward trajectory and is considered the final consolidation before a breakout.<\/p>\n

BTC\u2019s price drop to $38,600 at the end of January marked the bottom of the pullback<\/a>. With the breakout above $48,000, the Bitcoin price validated the cup and handle pattern.<\/p>\n

Setting A BTC Price Target<\/h2>\n

Dines also addressed the placement of the vertical projection from the bottom of the handle, clarifying its basis: \u201cIt\u2019s totally arbitrary and in the eye of the beholder. But longer answer, traders are eyeing charts for formations.\u201d<\/p>\n

The vertical target line, or the \u2018stick\u2019 on the right, is projected from the bottom of the handle. The height of the cup \u2014 from the low at around $17,600 to the resistance line at $48,000\u2014 sets the stage for the price target.<\/strong><\/p>\n

Dines added, \u201cA lot of traders will use the height of the bowl (from the low of the bowl to the top at the resistance line) to set their price target. Just add that height to the bottom of the handle \u2026 that\u2019s a decent guesstimate for where we\u2019d see the longs who entered on the breakthrough to set their price target.\u201d<\/p>\n

Based on the chart, the height from the cup\u2019s low to the resistance level is roughly $31,973, marking the increase in Bitcoin\u2019s price from its lowest point to the current level when the chart was produced. Projecting this height from the handle\u2019s formation suggests a target in the vicinity of $75,000.<\/p>\n

Dines further adds that the collective behavior of market participants will indeed guide the price movement: \u201d A lot of those longs would set a retrace at ~$75k as they close out their W. If enough participants put this trade on it will set the dominant price action \u2026 they win out and it will turn the chart into reality. I know it sounds ridiculous, but in the real world this is how markets actually discover price.\u201d<\/p>\n

At press time, BTC traded at $51,821.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Matt Dines, the Chief Investment Officer at Build Asset Management, has identified<\/a> a classical \u2018Cup and Handle\u2019 pattern in the Bitcoin (BTC) price chart, which he believes could signal an impending rally to $75,000. This technical formation is often considered a strong bullish signal and is closely watched by market analysts and traders.<\/p>\n

Bitcoin Price Validates Cup And Handle Pattern<\/h2>\n

The \u2018Cup\u2019 part of the pattern, resembling a bowl or rounding bottom, began forming in March 2022 when the price plunged below $48,000 and entered one of the longest Bitcoin bear markets<\/a>. The pattern reached its lowest point at approximately $17,600, signifying a strong support level for Bitcoin.<\/p>\n

The left side of the pattern shows a rounded bottom resembling a \u201ccup.\u201d It forms when the price initially declines, then consolidates, and finally starts to rise again. Since hitting this bottom, Bitcoin\u2019s price has made a steady recovery, mimicking the right side of the cup, indicating a bullish reversal of the previous downtrend.<\/p>\n

\u201cThe saucer or the \u2018cup\u2019 signifies a consolidation period, a pause in the downward trend, before the price begins to rise back up to the test resistance levels,\u201d Dines explained. The recovery to the initial resistance line completes the \u2018cup\u2019 portion of the pattern. The Bitcoin price completed this step in early January<\/a> this year.<\/p>\n

The subsequent \u2018Handle\u2019 is represented by a moderate retracement following the recovery, which forms a small dip or pullback from the peak. This handle is identified by a slight downward trajectory and is considered the final consolidation before a breakout.<\/p>\n

BTC\u2019s price drop to $38,600 at the end of January marked the bottom of the pullback<\/a>. With the breakout above $48,000, the Bitcoin price validated the cup and handle pattern.<\/p>\n

Setting A BTC Price Target<\/h2>\n

Dines also addressed the placement of the vertical projection from the bottom of the handle, clarifying its basis: \u201cIt\u2019s totally arbitrary and in the eye of the beholder. But longer answer, traders are eyeing charts for formations.\u201d<\/p>\n

The vertical target line, or the \u2018stick\u2019 on the right, is projected from the bottom of the handle. The height of the cup \u2014 from the low at around $17,600 to the resistance line at $48,000\u2014 sets the stage for the price target.<\/strong><\/p>\n

Dines added, \u201cA lot of traders will use the height of the bowl (from the low of the bowl to the top at the resistance line) to set their price target. Just add that height to the bottom of the handle \u2026 that\u2019s a decent guesstimate for where we\u2019d see the longs who entered on the breakthrough to set their price target.\u201d<\/p>\n

Based on the chart, the height from the cup\u2019s low to the resistance level is roughly $31,973, marking the increase in Bitcoin\u2019s price from its lowest point to the current level when the chart was produced. Projecting this height from the handle\u2019s formation suggests a target in the vicinity of $75,000.<\/p>\n

Dines further adds that the collective behavior of market participants will indeed guide the price movement: \u201d A lot of those longs would set a retrace at ~$75k as they close out their W. If enough participants put this trade on it will set the dominant price action \u2026 they win out and it will turn the chart into reality. I know it sounds ridiculous, but in the real world this is how markets actually discover price.\u201d<\/p>\n

At press time, BTC traded at $51,821.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-36131","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/36131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=36131"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/36131\/revisions"}],"predecessor-version":[{"id":36138,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/36131\/revisions\/36138"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=36131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=36131"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=36131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}