3 - 4 minute read
Multiple crypto analysts believe that the current correction in Bitcoin (BTC) is actually “extremely bullish.” In the past week, BTC has gone up by 0.9%, leading to speculation that the cryptocurrency could be forming a cup-and-handle pattern, a bullish technical indicator. Swissblock, a crypto-focused hedge fund, has released a chart suggesting that BTC is forming this pattern, which is still in play despite the recent retest of the neckline area. According to Swissblock, the current wave (2) is developing in an “Extended Flat,” which is bullish and appears to be coming to an end.
Swissblock’s analysts believe that Bitcoin will make a final push down to $26,500 in the coming days, acknowledging that BTC could go as low as $25,200 in the worst-case scenario. The minimum target for the cup-and-handle pattern is $35,000, while the maximum is $42,000, according to InvestAnswers, a YouTube channel with 443,000 subscribers.
As of the time of writing, BTC is trading at $28,880, up 1.83% in the past 24 hours and nearly 74% since the start of 2023. However, Bitcoin remains more than 58% from its all-time high of more than $69,000, which it hit in November 2021.
Swissblock’s analysis has led many traders to believe that the current correction in BTC is actually a bullish sign for the cryptocurrency. This sentiment is shared by InvestAnswers, which states that the minimum target for the cup-and-handle pattern is a good indication of where BTC is headed in the short term. However, traders should remain cautious, as the worst-case scenario of BTC going as low as $25,200 is still a possibility.
The Bottom Line
The current correction in Bitcoin is a bullish sign for the cryptocurrency, with the minimum target for the cup-and-handle pattern indicating a short-term price increase. However, traders should be cautious, as the worst-case scenario of BTC going as low as $25,200 is still possible. It is important to remain vigilant and adapt trading strategies to the volatile cryptocurrency market.