Do you want a cup of Bitcoin?

It is possible that Bitcoin is preparing to take on an unusual configuration that is the Cup Handle.

This graphic figure is usually formed in a trend reversal pattern. Since July 24, Bitcoin has been experiencing a significant decline in price, down from $ 8470 to $ 5913 on August 13, when it finally reversed that move, embarking on a journey up to $ 7,130 on day 28 of August. From that point on, he began a correction, followed by a value subline again, but now forming a double curve. It is precisely at this moment that the Cup Handle is defined.

Basically this figure consists of forming a "cup" and followed the "handle", both with the same format of semi-circle, but of quite different size. If in the next few days the asset lateralizes, or has a fall of at most 50% of the of the handle, then it is likely that a target price of the cup body size will be projected.

SCENARIO 1 - If the formation of Cup Handle is correct, there will be an immediate rise in prices, which could point to values between $ 8200 and $ 8,500, which justly coincides with a zone of accumulation and a very strong resistance, where possibly the market will impede the progression, indicating strong evidence of sale. One point that tells us that this analysis may be correct, is the strong resistance of approximately $ 7,140 that the market has created and that at the moment serves as support for the price.

SCENARIO 2 - If the resistance of the 7140 $ is broken down until 6800 $, it may represent a false Cup Handle, and a downtrend will start to correct the previous raise. So there are many methods for designing a possible re-entry target. I particularly like to use fibonacci retraction, pointing to the region between 0.5 and 0.618.

Did you have a guess about what could happen to the price of Bitcoin in the next few days?

Hi 5: D