Bitcoin (BTC) has been trading in a consolidation $5,000 price range between $25,000 and $35,000 per coin since 2023’s Q2, and despite slightly moving in a downtrend inside this range, zooming out, Bitcoin’s chart shows that it might be ‘coffee time’ (or ‘tea time’) for the leading cryptocurrency in a higher timeframe.
This happens as a Cup and Handle chart pattern seems to be forming, according to a recent analysis posted by an experienced stock and crypto trader on X (formerly Twitter) using the pseudonymous name Jelle (@CryptoJelleNL).
Some technical analysts deem the Cup and Handle pattern invalid. Still, Jelle believes it offers a bullish insight into Bitcoin’s long-term future price action, due to its “massive” size “below the $30k”, in the analyst’s words.
Notably, the ‘cup’ is formed by the bear market’s bottom at $15,500 and the two local tops at around $30,000. While the handle starts from the last local top, extending itself to the current consolidation zone.
Bitcoin price analysis
At the time of publication, BTC is changing hands by $26,582, after a short-term drop of 2% in the day, in which some traders hint at a ‘buy the dip’ opportunity. Bitcoin is also trading below the 200-day simple moving average, with only 13 green days in the last 30 days (43%).
Interestingly, there are some fundamental aspects supporting a coming bull market that could follow this recently spotted cup and handle pattern. Investors are mostly waiting for a positive outcome regarding a spot Bitcoin ETF approval by the SEC and also looking to the block subsidy halving, which is set for April 2024 and will reduce BTC’s supply inflation by half.
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