- The “Cup and Handle” pattern identified by TradingView suggests Bitcoin could surge to $125,000.
- Bitcoin is currently in the “Handle” phase, indicating a continuation of the upward trend.
According to TradingView’s automatic pattern detector, Bitcoin is poised for a significant price increase, targeting an impressive $125,000 in the current market cycle. This forecast is based on the identification of a technical chart pattern known as the “Cup and Handle,” which is widely regarded as a powerful bullish signal in financial markets.
Currently, Bitcoin is in the “Handle” phase of this pattern, a critical stage that often precedes a substantial upward price movement. The “Cup and Handle” is a chart formation that usually indicates the continuation of an existing uptrend, providing traders and investors with a roadmap of potential market behavior.
The formation of the “Cup and Handle” begins with the “Cup” phase, where the price of the asset initially declines, creating a rounded bottom as it recovers gradually to form the right side of the cup. This upward recovery typically surpasses the previous peak, creating a smooth, rounded structure. Following this phase, the price experiences a temporary pullback, forming a short period of consolidation that resembles the “Handle” of the cup.
When the price breaks above the peak of the cup, the pattern is considered complete, signaling that the asset is ready to continue its upward trajectory. In Bitcoin’s case, TradingView’s analysis suggests a price target of $125,000, positioning this cryptocurrency for one of its most bullish outlooks in recent times.
TradingView’s platform also allows for the automatic detection of the bearish counterpart of this pattern, known as the “Inverse Cup and Handle.” However, the current market sentiment and technical indicators point overwhelmingly towards a positive outlook for Bitcoin.
Optimistic Outlook for Bitcoin
As Bitcoin navigates a period of sideways consolidation, various market analysts and trading groups, including Made Easy Finance, are forecasting a significant bullish trend for 2024. This optimism is fueled by the anticipation of two major events that have historically driven Bitcoin to new all-time highs during past market cycles.
The first pivotal event is the Bitcoin halving, an event that occurs approximately every four years, reducing the rate at which new Bitcoins are created. Historically, Bitcoin prices have taken around five to six months post-halving to revisit previous highs, followed by an additional six months to reach new peaks.
The second event highlighted by Made Easy Finance is the signal from the Coppock Curve, an indicator used to identify long-term bullish reversals. The Coppock Curve tracks the weighted moving average over two periods, and a shift from negative to positive values is interpreted as a strong bullish signal.