What are the key characteristics of the cup and handle pattern in bullish cryptocurrency markets?

1 answers

• Nov 28, 2021 · 3 years ago
  The cup and handle pattern is a popular chart pattern used by traders to identify potential bullish trends in cryptocurrency markets. It is named after its resemblance to a cup with a handle. The cup formation represents a period of consolidation and accumulation, where the price reaches a bottom and starts to rise. The handle formation represents a temporary pullback before the price continues its upward trend. The pattern is considered complete when the price breaks out above the resistance level formed by the top of the cup. This breakout confirms the bullish sentiment and often leads to a significant price increase. Traders can use this pattern to identify potential buying opportunities and to set profit targets.
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