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Bitcoin is headed for $90,000 according to this technical pattern

Bitcoin is headed for $90,000 according to this technical pattern

Cryptodnes2024/06/07 17:46
By:Cryptodnes

Bitcoin's recent price movements have caught the attention of traders, with technical analysis suggesting a potential bullish rally.

At the time of writing the price of Bitcoin is $67,200, with a daily trading volume of $38.7 billion. Despite the recent 1.3% drop, AltCryptoGems analyst Sjuul pointed out a possible bullish “Cup Handle” pattern forming on the chart of BTC/ USDT .

Technical analysis

The Cup Handle pattern is a bullish chart formation that is used by traders to identify potential long positions. This model is characterized by a “U” shape (the cup) followed by a slight downward movement (the handle). According to Sjuul, Bitcoin appears to be forming a remarkable Cup Handle formation that usually indicates a bullish trend.

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Sjuul describes two possible trading scenarios with this model. The first scenario involves pulling back deeper along the handle channels. In this case, traders can look to enter the market at the green area, where the former resistance level has turned into support, complemented by the 4H EMA200. This zone is considered ideal to buy if a dip occurs.

Bitcoin is headed for $90,000 according to this technical pattern image 0

The second scenario occurs if the bulls continue to push higher. In this case, traders will wait for a breakout of the Cup Handle pattern by entering at the breakout level. In both scenarios, the critical factor is to see a breakout and break through the resistance level; otherwise the validity of the model is compromised.

If the Cup Handle pattern holds and breaks, the technical target should match the depth of the lowest point of the cup. According to Sjuul's estimates, that target will be around the $90,000 level. This potential spike represents a significant opportunity for traders, highlighting the importance of closely monitoring BTC price movements and fashion developments

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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