BTCUSD - 1D Cup & Handle 06/10/21
Updated
Potential cup & handle being seen on the 1D chart, conforming to traditional duration standard as per Bulkowski definition.
http://thepatternsite.com/cup.html
Not expecting an imminent breakout with the current state of world markets but the pattern is visible. BTC had a marvelous run up to here post-Wolfe wave breakout, which reached its target.
Technicals
As seen below, the handle based off the 50% fib (half of the cup height) - a prerequisite for a handle. The measured price target also coincides with the 61.8% extension of the June - September leg.
The measured price target for a successful breakout would be ~28% ($67908). A traditional failure is a rejection after 5% breakout.
BTC has been showing impressive behaviour in accordance with traditional markets. At current moment of posting this chart, ES1! is violently ranging, with NQ1! and YM1! following suit. We may be in for some more volatile ranging here before continuing up to a breakout, and may even see a bounce off ~45k or ~47.5k (in the bullish case). Invalidation would come around the 40k mark, which is quite a distance so positions should be managed accordingly with intraday signals, until a defined breakout.
Generally, looking at the large range defined in green, I think this may take some time to play out unless traditional markets make a local bottom here and commence an upswing. The horizons still look fairly shaky. Historical liquidity is showing a strong node around ~56.5k so I would expect strong price action around that area.
I will be posting a bearish scenario soon of a different pattern that BTC is also tackling on the higher TF.
As always, don't take this as financial advice and DYOR.
http://thepatternsite.com/cup.html
Not expecting an imminent breakout with the current state of world markets but the pattern is visible. BTC had a marvelous run up to here post-Wolfe wave breakout, which reached its target.
Technicals
- RSI trending heavily in bullish control zone, with no bearish divergence in play yet.
- BBWP gradient increasing steadily, with room to the upside.
- Increased volumes seen in the handle - both on Bitstamp's local volume and the aggregated volume.
- Bounced off topside of previous range/accumulation between 30k-40k.
As seen below, the handle based off the 50% fib (half of the cup height) - a prerequisite for a handle. The measured price target also coincides with the 61.8% extension of the June - September leg.
The measured price target for a successful breakout would be ~28% ($67908). A traditional failure is a rejection after 5% breakout.
BTC has been showing impressive behaviour in accordance with traditional markets. At current moment of posting this chart, ES1! is violently ranging, with NQ1! and YM1! following suit. We may be in for some more volatile ranging here before continuing up to a breakout, and may even see a bounce off ~45k or ~47.5k (in the bullish case). Invalidation would come around the 40k mark, which is quite a distance so positions should be managed accordingly with intraday signals, until a defined breakout.
Generally, looking at the large range defined in green, I think this may take some time to play out unless traditional markets make a local bottom here and commence an upswing. The horizons still look fairly shaky. Historical liquidity is showing a strong node around ~56.5k so I would expect strong price action around that area.
I will be posting a bearish scenario soon of a different pattern that BTC is also tackling on the higher TF.
As always, don't take this as financial advice and DYOR.
Note
A 12H timeframe perspective of the Wolfe wave completing and essentially making the handle:s3.amazonaws.com/tradingview/snapshots/d/DVYvreAF.png
Note
Strong reaction seen at 56.5k, as expected in this idea and from previous Wyckoff Phase D idea. Flipping this near term area into support would be a very healthy sign for BTC.
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