The Bitcoin price was trading at $67,762 as of 5:00 am EST, down 0.5% on the day. BTC is trading in a second straight bearish session on the daily chart after dropping more than 3% over the last two days.

Bitcoin’s underperformance follows a correction in the wider crypto market which is also down 0.11% over the last 24 hours to $2.55 trillion.

This correction has resulted in more than $128 million leveraged positions being liquidated across derivatives markets. Long-position liquidations made up 65% of the total liquidations.

Of these, $24.7 million Bitcoin traders were liquidated, $14.59 of which were long positions.

Meanwhile, on May 28, $105.2 million outflows from Grayscale’s spot Bitcoin ETF GBTC eclipsed $102.5 million inflows into BlackRock’s IBIT. This saw total inflows drop below $100 million for the first time since May 14, resting at $45 million.

Despite this negative outlook for BTC, a strong market setup points to a massive increase toward $87,000.

The BTC price action has formed a cup-and-handle chart pattern on the daily chart, as shown below.

This chart pattern consists of a rounded bottom called a ‘cup’ followed by a ‘handle.’ The handle is a brief, downward trend to the right of the cup’s peak. It typically doesn’t fall below the bottom of the cup. A trend line drawn connecting the cup and the handle’s peaks is called the “neckline” and is key for tracking a breakout.

A clear daily candlestick close above the neckline forecasts a 21% upswing to $87,560. This is obtained by measuring the distance between the cup’s peak to the right side and the bottom of the cup and adding it to the breakout point at $72,000.

This move would be interesting to watch as it represents an 30% ascent from the current price and ushers the big crypto into price discovery, breaching the psychological levels at $80,000 and $85,000.

While the outlook for the BTC price looks logical, the confirmation for the cup and handle setup is not yet here. The cup part of the pattern is yet complete. Beyond that, the price of the pioneer cryptocurrency needs to flip the breakout level at $$72,000 to provide a confirmation.

At the time of writing, the relative strength index (RSI) was facing downward, suggesting that the bears were taking control of the price. The price strength at 58 suggests that the market conditions still favor the upside.

If the Bitcoin price turns down from the current level, BTC’s price could slide lower. In such a case, a daily candlestick close below the $65,000 psychological level would create a lower low and invalidate the bullish thesis.

This development would see BTC drop to revisit the bottom of the cup at $56,500, representing a 16.5% loss from the current price.