.png){kind=logo}
The Bitcoin price is exchanging hands at $66,182 as of 3:30 am EST, down 0.12% over the last 24 hours, according to data from CoinMarketCap.
BTC has been on an extended uptrend since finding support from the $15,500 support floor in November 2022. Since then, the price has more than tripled to the current level. The technical setup projects a massive breakout for the big crypto.
The BTC price action has led to the formation of 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 an 77% upswing to $123,240 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 $69,150.
This move would be interesting to watch as it represents an 86% ascent from the current price and ushers the new crypto into price discovery, breaching the psychological levels at $100,000 and $200,000.
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 $$69,150 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 57 suggests that the market conditions still favor the upside.
If the Bitcoin turns down from the current level, BTC’s price could slide lower. In such a case, a daily candlestick close below the $60,000 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 $15,000, representing a 75% loss from the current price.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
