- Cup and handle pattern suggests that BTC would hit $38,838.75 soon
- The price prediction is with the 1-hour timeframe of BTCUSDT
- Since the pattern is mostly correct, we should expect a bullish run for BTC
Bitcoin (BTC) is one of the cryptocurrencies that was affected by the recent market downtrend as it attained a 90-day low price of $33,184.06. However, the Cup and Handle Chart pattern shows that it will experience a bullish run that would made it trade around $38,838.75 soon.
What is Cup and handle chart pattern?
The following are some of the facts to know about the cup and handle chart pattern:
- It is a bullish continuation chart pattern.
- After a bullish run which forms the cup, it experiences a period of consolidation which forms the handle before the next breakout.
- The bottom of the round cup should be at the support while the top of the cup should be at the resistance.
- After the consolidation which is around the handle, the next breakout occurs, which should cover at least the gap between the top and the base of the round cup.
Cup and Handle Chart Pattern for 1H time period for BTCUSDT
BTCUSDT Cup and Handle Chart Pattern (Source: Tradingview)
The chart above shows the support and resistance level for Bitcoin (BTC) in a 1-hour timeframe. The price of BTC at the support1 level was $33210.57 before it reversed and traded at $36,024.66 at resistance1. This gave a profit of $2,814.09 to traders before the consolidation.
Between the resistance and support is a round shape (cup), which shows that BTC might continue the bullish run to a price that covers atleast the same profit from the resistance level. That would mean BTC trading at $38,838.75 ($36,024.66 +42,814.09).
In conclusion, since the cup and handle chart pattern is mostly correct, the price of BTC would soon trade at $38,838.75.