mjtrustme

BTC- Is bitcoin printing a cup and handle?

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
We are taking a step back to analyze the situation. According to my previous analyses, BTC had a good run up from our short position at 9.4k. It broke out of the bear flag rather nicely and invalidated it however the indicators were way to hot and needed to calm down first.

Now that the indicators are cooling down and BTC is out of the bearflag we are in a NEUTRAL zone.

The indicators are still hanging on to the bearish sign, but the bounce from the 9.4k area happened already several times, showing this could be the new floor for BTC . To add to the bullish sentiment, BTC could be performing the famous cup and handle chart pattern here. A break of the handle trendlings would prove that BTC is infact printing cup and handles and will be headed up another time.

For now we remain neutral until proven other wise.

IF the indicators see a slow gradual decline and BTC stays in the handle ( bull flag ) channel) its a BUY! for a LONG position.

If BTC breaks the channel and continues to correct we will wait to enter another short term position.
Comment: KEY TAKEAWAYS
A cup and handle price pattern on bar charts resembles a cup and handle where the cup is in the shape of a "U" and the handle has a slight downward drift.
A cup and handle is considered a bullish continuation pattern and is used to identify buying opportunities.
Traders should place a stop buy order slightly above the upper trend line of the handle.

- INVESTPEDIA
Comment:
We need BTC to descend again inside of this bear flag a couple times to reset the indicators. In reality if this does not happen and it breaks the flag, it will be a short lived rally with major downside after.

If we can get the indicators to reset, we may be going ot see 12k again!
Trade active: The flag broke out!

Comments

Nice
+2 Reply
mjtrustme Tamil_Forex
@Tamil_Forex, we shall see if she wants to complete this pattern and take us higher. I will admit however, usually you dont see a C&H after a downwards trend like how we are in.

Its usually a better sign to see a C&H form after we reach a high. That strengthens the means of the pattern. Since its BTC however, I remain neutral.
Reply
Tamil_Forex mjtrustme
@mjtrustme, which time frame are use it ???
Reply
Cup and handle or just cup requires a approach from price below to the beginning of the pattern. Eg. Gold
+1 Reply
@ssari, Not 100%. Not all c&h formations happen after uptrend. some of the biggest in history have happened after an uptrend, and slight downtred. Do not forget BTC ran to 12k.

Thats a local high and the downtrend from that could have been a healthy correction and now we are in continuation pattern.
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Informativ description and analysis.
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