U.Today – Right now, a bullish technical pattern known as a cup and handle is forming, which has historically been a signal for major price increases. Bitcoin could be on the cusp of a major surge that could take its price well above $100,000 if this pattern holds.
The cup and handle pattern is widely recognized for its consistent ability to signal positive trends. A smaller period of consolidation forms the handle after the price first declines and then gradually recovers to form a cup shape. The price usually experiences a significant upward move after breaking through the resistance level at the top of the handle.
As of now, it seems like Bitcoin is finishing the handle formation. Traders are waiting for a breakout that can validate the pattern as the price has been accumulating just below a considerable resistance zone. The measured move indicates a potential target well above $100,000 for Bitcoin if it can overcome this resistance.
However, it is worth noting that a fundamental increase in Bitcoin price is likely required for this pattern to fully materialize. While strong signals can be obtained from technical patterns, these are usually triggered by other factors such as market sentiment, macroeconomic events, or major news in the cryptocurrency world.
The next big Bitcoin rally might have to be triggered by a post-halving push, which has historically given the cryptocurrency significant bullish momentum. Historically, there have been notable price increases during the post-halving period, which is currently the case for Bitcoin. The scarcity that results from fewer new Bitcoins entering the market frequently drives prices up. This could pave the way for a massive surge in Bitcoin price when combined with the bullish cup and handle pattern.
This article was originally published on U.Today
