There is a cup and handle pattern forming with bitcoin. Initially I was looking for this to form a larger cup and handle reaching back up to 12k to get rejected. But clearly it has broken out of that pattern. What I see as a possibility now is the top of the pattern around 10k, and currently we're making the handle in a descending channel. Right now I'm seeing a low for this correction at the 0.681 Fib level around 7800. BUT it very well could break down even lower to the 0.786 mark at about 7250. Only time will tell. After this pattern completes, we should have a nice run past 10k (finally) but then we may see rejection at the 12k levels again. Also interesting to note is the 4-hour MACD moving within a triangle. A breakout on the MACD could correspond to a breakout of the cup and handle.
I'm new to the site and TA in general but have been in the crypto space for a little while now. If you enjoyed reading, give me a like and let me know what you think, thanks!
I'm new to the site and TA in general but have been in the crypto space for a little while now. If you enjoyed reading, give me a like and let me know what you think, thanks!
I redrew the lines of the handle's descending channel. Also notice that the MACD bounced exactly on the triangle. I was looking for the price to go lower to the 0.618 fib level but it definitely could have completed the correction at the 0.5. We will see shortly. If the price breaks significantly out of the descending channel, then the pattern is confirmed, and we will see quite a bit of upside, in my opinion.