Bitcoin’s Next Move: Will the Inverse Cup and Handle Pattern Play Out?
Bitcoin’s Price Action and Key Levels to Watch
Bitcoin’s price movement has been closely following a technical pattern that could indicate its next big move. As expected from our previous analysis, Bitcoin (BTCUSDT) has dropped to the support zone between $96,150 and $94,700. Now, the question is whether it will continue downward or find strength to break resistance.
The Inverse Cup and Handle Pattern in Play
Examining Bitcoin’s 15-minute time frame chart, we can see that it is forming an Inverse Cup and Handle Pattern, with the handle portion currently in progress. This pattern, if completed, could signal a further bearish trend.
One key level to watch is $96,700—a critical point in Bitcoin’s recent price action. Currently, Bitcoin is trading below this level, increasing the possibility of the Inverse Cup and Handle Pattern playing out and pushing prices lower.
Understanding the Inverse Cup and Handle Pattern
Educational Tip
The Inverse Cup and Handle Pattern is a bearish reversal pattern that typically forms after a downtrend. It consists of:
- A rounded price decline forming the “cup” shape.
- A small upward consolidation creating the “handle”.
- A breakdown below the handle, confirming the pattern and signaling a potential downward move.
Volume and Confirmation of the Pattern
Looking at Bitcoin’s 1-hour time frame, the recent price increase in the last two or three candlesticks was NOT accompanied by significant volume. This lack of volume strengthens the case that the handle formation is nearing completion and could soon break downward.
What to Expect Next?
If the Neckline of the Inverse Cup and Handle Pattern breaks, we can expect Bitcoin to test the Support lines and the Heavy Support Zone between $93,300 and $90,500.
However, if Bitcoin manages to break the resistance at $96,700 and sustain above it, we could see a breakout from the Descending Channel. In this scenario, Bitcoin could move towards closing the CME Gap between $97,845 and $97,110.
Final Thoughts
The coming days will be crucial in determining Bitcoin’s direction. If you’re trading, remember these key points:
- Respect support and resistance levels
- Use stop-loss orders to manage risk
- Follow updates on Bitcoin’s price action
- Stay informed about key chart patterns and volume analysis
What are your thoughts? Do you think the Inverse Cup and Handle Pattern will play out? Share your insights in the comments below!
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Disclaimer
This content is for informational purposes only and should not be considered financial advice. Cryptocurrency markets are highly volatile, and you should conduct your own research before making any investment decisions. We do not take responsibility for any financial losses incurred based on the information provided in this article.