Probably, the Cup and Handle pattern is forming on the BTCUSDT chart. This pattern is usually formed to continue a trend movement. The upside shot will depend on how low the price drops in the handle, but the levels from above are still relevant: $32650, $33600, $34550.
The critical level for the pattern to be relevant is $30275. Fixing the BTC price below this level can give sellers confidence at last that they can break the stops below $29500-30000 for the 5th time.
Yesterday was an Independence Day holiday in the US, so the market was sluggish. Today, the FOMC minutes are due to be published, which can revitalize, invigorate, and add volatility to the charts, so keep this in mind. Perhaps those minutes will contain a "hint" of what will happen to the Fed rate on 07/26/23.
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BTCUSDT price reaches a critical level of $30275 It's time for buyers to get active if that's what they're planning to move the price up
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Yesterday, buyers fulfilled the "minimum program" and kept the price above the critical level. Now the main resistance is above $30,800, after breaking through which growth may accelerate. Also, based on the depth of the correction"the handles" recalculated the take profits for the pattern, now they are $32500, $32800, $33200
Cup & handle after a bullish run? That's weird... I don't think this can be valid. Usually this pattern works after a bearish time.
P_S_trade
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@fortitude23, So you're saying that the Cup and Handle is a reversal pattern?
fortitude23
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@P_S_trade, yes, a reversal pattern after a bearish trend. But in your chart, the trend before the Cup and Handle was bullish. It is unusual, to say at least this. This pattern is usually described like that: <<The cup and handle pattern occurs when the price of an asset trends downward, followed by a stabilizing period. Prices then rise to an approximately equal size to the prior decline. It creates a U-shape or the "cup" in the "cup and handle." The price then moves sideways or drifts downward within a small price range, forming the handle.>> For me, this pattern in your chart is more like a double top.
P_S_trade
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@fortitude23, In the books: "How to Make Money in Stocks (McGraw-Hill, 1988) and Encyclopedia of chart patterns (Thomas Bulkowski) the authors described and statistically proved that the Cup and Handle pattern is a trend continuation pattern, not a reversal.