BTC Cup and Handle|Hidden Bullish Divergence|$12,780 Target

21 feb 2020

Hello Traders!

Today’s update will be on BTC, forming a bullish Cup and handle pattern that will only be confirmed upon a break of structural resistance.

Points to consider,
- Probable bullish pattern
- Clear structural resistance
- EMA’s barely holding BTC
- RSI putting in lower lows
- Stochastics in lower regions
- Average volume

BTC is currently trading in the handle of the probable bullish pattern yet to be confirmed. Structural resistance needs to break for confirmation with a technical target at around $12,780.

The EMA’s are currently upon the cusp of crossing bearish, still trading in the handle where a break from this range will dictate the validity of the formation.

The RSI is putting in lower lows, diverging from price, putting more emphasis on the hidden bullish divergence. Stochastics is currently trading in the lower regions, can stay trading here for an extended period of time, however lots of stored momentum to the upside.

Volume is average, signalling no heavy sell off, a good indication for a true handle in this formation.

The typical criteria that needs to be met in a cup and handle formation is the following

1) At least a 30% Run up from local lows (BTC over 50%)
2) A sell off from high 15-30% (BTC considered early in the handle )
3) Bottom or floor of support (BTC Local Support)

Overall, in my opinion, BTC has a high degree of confirming this probable cup and handle formation after breaking structural resistance. It is a strong contender for the criteria’s that need to be met, putting a technical target at around $12,780.

What are your thoughts?

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And remember

. If winning trades give you a buzz, you’re conditioning your mind to drool in anticipation of its next fix. And when it doesn’t happen, it’ll upset your expectations. If thrill naturally arises (which it will), feel it as it is, but then don’t cling to it.