Bitcoin - Cup and handle in the making?

• BTC in the process of making bullish cup and handle pattern.

• Needs to consolidate recent gains for further gains to occur.

Bitcoin, the largest cryptocurreny by market capitalisation, is in the process of forming a cup and handle pattern, which is a bullish sign for the prices. The only thing required is price consolidation to complete the formation of handle and then a breakout above the line of a cup.

BTC/USD is down seven cents of a percent at $3,814 and trading in less than 3 percent range for the day in a low volatility weekend trading - good sign for the cup and handle formation to take shape on 360-minute chart of BTC.

Prices have declined a bit after recent gains and few more bars of consolidation on this time scale and a breakout above $4,160-70 is all that the bulls need for the prices to break out. Target of this breakout would be around $5,200. But, for the longer price trend to change up, bulls will need some more strength to cross past $5,790, which is its 21 weeks SMA.

BTC/USD 360-minute chart:

Manoj B Rawal

FXStreet