Bitcoin has been forming a pattern for years now, and even with the uncertain price movements, this pattern has now finally be completed. This was explained by crypto analyst Bitcoin Teddy on the X social media platform, showing this pattern, how it was formed, and what the implications are for this formation on the Bitcoin price.
The Mid-Year Cup And Handle Pattern That Was Years In The Making
In the post, the crypto analyst pointed out that the Bitcoin price has completed a Cup and Handle pattern formation. Unlike some Cup And Handle patterns that are formed in a relatively short time, the analyst says this one has actually been forming for years, and now it’s finally ready to play out.
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This pattern was completed with the most recent Bitcoin retest of the $60,000 support. This support was broken briefly, but the price quickly recovered. What this suggests is the formation of the handle part of the pattern after the cup was completed over the years.
To put this in perspective, the crypto analyst explained that three things needed to happen. These include the breakout, the retest, and a structure confirmation. The breakout was completed when the price recovered. Then, when the price crashed below $60,000, the retest was done.
Now, the confirmation is in place as the Bitcoin price has begun to move upward again. What comes next is even more important since the completion of a Cup and Handle pattern has historically been a precursor to a bull trend.
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As the analyst explains, the resulting price surge will not be something like a 20% breakout or so. Historically, a breakout from this pattern would see the price rise multiples of where it was when the pattern was finally confirmed.
In this case, the resulting breakout is expected to send the Bitcoin price to new all-time highs. The minimum target placed with the analysis puts the top of this trend at $220,000, which would mean an almost 300% move from where the Bitcoin price is currently trading. What this means is that $220,000 could only be the start of this move if the momentum builds much higher than expected.
Featured image from Dall.E, chart from TradingView.com
