U.Today – One of the strongest and most bullish patterns on the chart has emerged. Digital gold is in the process of painting the cup and handle pattern, a well-known formation that often leads to bullish parties. This pattern, historically a harbinger of significant price increases, could boost sentiment.
There is a notable similarity between the chart from 2016 and 2024. Bitcoin created a similar cup and handle pattern in 2016 that ultimately resulted in a significant breakout and an extended bull run.
If the past repeats itself, a major rally in Bitcoin prices may soon occur. Despite overall market volatility, Bitcoin has recently demonstrated resilience. Bitcoin price has recently been oscillating between important resistance and support levels.
Currently trading at around $66,000, BTC is still above the 200-day EMA and the 50-day EMA, two critical support levels for bullish momentum. Constant trading volume suggests a constant level of interest. As long as it remains in neutral territory, Bitcoin can still move in any direction, based on the RSI.
On the other hand, the formation of the cup and handle pattern provides a strong bullish signal, suggesting a possible bullish breakout. The way Bitcoin has performed in recent months has been remarkable.
Bitcoin experienced a drop after its peak, but was able to find stability and recover. The narrative surrounding Bitcoin remains positive in the market due to growing institutional interest and adoption. If the aforementioned pattern develops, Bitcoin could end up in a great place for a substantial reversal.
This article was originally published on U.Today.
