I stumbled across this idea for a cup and handle formation while looking at a chart for Solana on a one week time frame. I subsequently switched to Bitcoin and found the same pattern forming which isn't surprising, I suspect Solana is just tracking bitcoin. Current sentiment is for Bitcoin to rally above previous ATH, and with this pattern forming it would confirm this. I expect a pullback to occur to form the handle, and from there a breakout towards the upside.
How I would look at trading this, wait for the handle to start forming. Draw in the downward trendlines. As soon as price breaks above the upper trendline, place a long position. This may not play out, if there is too much resistance we may see the price falling back down.
How I would look at trading this, wait for the handle to start forming. Draw in the downward trendlines. As soon as price breaks above the upper trendline, place a long position. This may not play out, if there is too much resistance we may see the price falling back down.