Bitcoin has been forming a pattern for years, and even with the uncertain price movements, this pattern is now finally complete. This was it explained by crypto analyst Bitcoin Teddy on the social media platform
The mid-year cup and handle pattern that was years in the making
In the post, the crypto analyst pointed out that Bitcoin price has completed a Cup and Handle pattern formation. Unlike some Cup And Handle patterns that form in a relatively short period of time, the analyst says this one has been forming for years, and is now finally ready to play out.
Related reading
This pattern was completed with the most recent Bitcoin retest of the $60,000 support. This support was briefly broken, but the price quickly recovered. What this suggests is the formation of the handle portion of the pattern after the cup was completed over the years.
To put this into perspective, the crypto analyst explained that three things needed to happen. These include the breakout, the retest, and a structure confirmation. The outbreak was complete when the price recovered. When the price subsequently fell below $60,000, the new test was conducted.
Now the confirmation is present as the The Bitcoin price is starting to rise again. What comes next is even more important, as the completion of a Cup and Handle pattern has historically been a precursor to a bull trend.
Related reading
As the analyst explains, the resulting price increase won’t be like a 20% breakout or so. Historically, a breakout from this pattern would see the price rise a multiple of where it was when the pattern was finally confirmed.
In this case, the resulting breakout is expected to send Bitcoin price to new all-time highs. The minimum target set by the analysis places the top of this trend at $220,000, which would represent a move of almost 300% from where the Bitcoin price is currently trading. What this means is that $220,000 could only be the start of this move if momentum becomes much higher than expected.
Featured image of Dall.E, chart from TradingView.com