Weekly cup and handle showing its true face1. Cup and Handle Pattern
The large white arc indicates a potential Cup and Handle formation, a bullish continuation pattern. This pattern usually suggests a potential breakout if confirmed. The cup forms after a rounded bottom, while the handle forms as a consolidation after the initial rise, often before a breakout.
The price action to the right, after the cup, suggests the handle formation with consolidation occurring between $60,000 - $70,000.
2. Support and Resistance Levels
Multiple horizontal lines of different colors (green, yellow, red) highlight key support and resistance levels:
Support levels seem to be around $59,000, $60,000, $61,000, and $62,000.
Resistance levels around $66,000, $67,000, and higher, with the current price at $66,770.
The chart shows a clustering of price activity around these levels, indicating significant market reactions (buying and selling) at these points.
3. Trend lines
The blue descending lines indicate a downtrend or correction after the local high above $66,000. However, the price has broken above this trend line, which might suggest a potential reversal or continuation of the bullish trend.
This breakout from the downward trend line supports the bullish case for a further price rise.
4. Indicators
Moving Averages (MA's): The chart includes what looks like a moving average (green line), which seems to be supporting price action. The moving average is following the general uptrend, which could indicate a bullish momentum.
There are blue dots placed on key points along the price chart, possibly indicating buy signals or moments when the price crossed significant thresholds, such as moving averages or support/resistance levels.
5. Volume and Momentum
Although the volume is not directly visible in this screenshot, the pattern’s significance, combined with breaking key resistance levels, suggests increasing buying momentum.
6. Price Targets
If the Cup and Handle pattern plays out, the price target could be significantly higher than the resistance at $67,000. Typical cup and handle breakouts measure the height of the cup and project that upwards, which could push BTCUSD toward new all-time highs.
7. General Sentiment
The overall sentiment appears bullish, as indicated by the potential Cup and Handle formation, breakout of the downtrend, and the strong support levels holding up the price.
In summary, this analysis suggests that BTCUSD is testing significant resistance at $66,770. If the Cup and Handle pattern is confirmed and the price breaks above $67,000 with strong volume, it could signal a continuation of the bullish trend toward higher price targets. However, if the price is rejected at these resistance levels, a retest of support around $61,000–$62,000 is possible.
