The Cup and Handle pattern is a bullish continuation pattern used in technical analysis to predict the continuation of an uptrend.

Observe the weekly chart for Bitcoin below.

Today, Sunday, July 28th 2024, the Bitcoin price sits at approximately 69K USD.

It has formed a cup over a time span of 16 months, characterized by a rounded bottom structure.

Price has rallied back up to the top of the initiation of the cup and is now consolidating with the “handle” portion.

We could see price retrace up to 30-50% of the cup depth.

I have marked out a line at a 33% retrace which also coincides with a bullish order block at approximately 51K USD.

The blue path marked is what I could see happening for bitcoin’s price.

Once we have clearly broken out above the top of the cup the price target will be at ~128K USD.

This happens to sit at exactly halfway between the 1.618 and the 2.618 Fib level that I have drawn as well.

Should we follow the orange path marked, a breakout would still lead to the same price target of 128K USD.