Bitcoin Forms Massive Cup and Handle – Trustnodes
Bitcoin develops a nine-month cup and handles formation on weekly candles for the first time since 2019.
The cup is one of the longest we’ve seen in crypto, and as you’d expect, it looks like a two-year-old drew it, but the structure is mostly there.
We form the left side, starting with a sharp drop in June, and then there is a lower bottom in November to give it a curved U shape.
The right has a strong jump in March, with that anyone can guess whether the last few weeks have actually created a handle.
A cup and handle is one of the most bullish formations in technical analysis because it indicates that the bears are out of ammunition.
They were strong in June and brought the price down considerably, but afterwards we have more sideways than price falls, culminating in the two-month sideways between November and January.
With bears no longer pushing the price down further, the bulls gave it a try and doubled from $15,000 to $30,000.
Bjørner gives it one last try and forms the handle. If it turns out to be a handle, it will be a final confirmation that the bear has nothing left.
Then bulls charge on a clear road. In this case to maybe $50,000, but of course that depends on whether it actually plays out.
More generally, May tends to be a great month in crypto. We have the Consensus Conference, a title from 2016 related to the block size wars of the time that is a bit out of date now.
It’s still bearish, so we expect it to be boring, but these days these conferences are huge affairs, kind of like the World Cup finals or the Super Bowl for crypto.
In the middle of the bull we had Jack Dorsey getting hooked, F Elon Max Keiser, the dogecoin guy, and a little more in what we called the best bitcoin conference yet.
It was the Bitcoin Magazine conference, not Coindesk’s consensus. As new players in the conference industry, the novelty perhaps gave it an advantage.
Consensus, on the other hand, tends to be a more corporate affair, with many of these, um, bureaucrats. They are just about to finish, and will hold it in April this year.
The Bitcoin Miami conference is next month, and this features Patrick McHenry, chairman of the House Committee on Financial Services.
They also have Tulsi Gabbard, and some governor of Java in Indonesia, in uniform as well.
Exactly why these conferences affect the price is anyone’s guess, or indeed whether they affect it at all, but more broadly, in addition to traditional finance being a bit shaky right now, it’s also arguably the case that crypto has just fallen too much .
It’s in the price. In many other measures, they increase a lot. A clear illustration of that is all these congressmen talking about crypto, a testament to its success and an indication that the industry is on a line of resistance before hopefully breaking through to get rid of the dinosaurs and make things shine again.
“We should not invent new accommodating regulatory structures,” so Maxine Waters.
“We shouldn’t be making things up,” and if by us she means 84-year-olds like her, then neither should they be doing much other than enjoying the retirement sun instead of hoarding those positions of power.
But the fact that they tend to be dinosaurs is obviously in our favor because all we have to do to win is keep doing what we’re doing and wait.
The new generation has very different ideas, while the old won’t change theirs because what do they care. As it happens, there is much more of the former than the latter, so changes are forced through.
That’s the bet, and if the bears are tired of betting now, then maybe we’ll get a run even if bulls remember past episodes, at this point, runs don’t tend to last.
But what does hold mean? Down to $40,000 from $50,000, or $35,000 is the bottom, and reasonably enough $30,000 is the worst? Make today’s price less of a disadvantage and potentially a double for traders.
For holders, just keep holding. While for users, the question is whether it is only at this stage when we first start to see the effects of the raw adoption under the brutal bear.
And whatever we’re talking about up is a pretty good indicator in itself, since it’s been quite a while in crypto terms since we even considered it likley.
The train is moving slowly. For the OGs, they hope it continues to be slow until they get their gox coins in September or October, but either way, this could be a slow moving train with little hindsight. to settle on a potential new level during the summer, then the fall to provide more clarity.
