Bitcoin (CRYPTO: BTC) is trading higher Monday in a cryptocurrency market that’s recovering after seeing a down few days last week. Bitcoin looks to be forming into the handle portion of a cup and handle pattern.
Bitcoin was up 1.48% at $58,164.94 at press time.
See Also: What Type Of Pattern Is Bitcoin Forming Into?
Bitcoin Daily Chart Analysis
- Bitcoin was falling last week and now looks to be recovering the level and forming into the handle of what technical traders call a cup and handle pattern.
- The cup pushed Bitcoin up to the $60,000 level where it tried to hold as support but was unable for a time. Now forming into the handle, it may try to attempt to break above and hold this area as support once again. If unable to hold, the stock could find support near the $30,000 in the future as this was where it has held in the past.
- The crypto is trading below the 50-day moving average (green), but above the 200-day moving average (blue) indicating Bitcoin is likely in a period of consolidation.
- The 50-day moving average could hold as an area of resistance, while the 200-day moving average will likely hold as an area of support.
- The Relative Strength Index (RSI) is starting to climb back higher and now sits at 48 on the indicator. This shows that more buyers have been moving into the crypto, but overall there is still slightly more selling pressure.
What’s Next For Bitcoin?
Bullish traders would like to see the handle pattern confirm and for Bitcoin to push back above the $60,000 level again. Bulls then want to see this level become support, hinting the crypto may be ready for its next leg up.
Bearish traders want to see the crypto continue to fall and be unable to form the handle pattern. Bears are then looking for a bearish market where the price of Bitcoin falls and possibly makes it down to the next strong level of support near $30,000. If the price crossed below this level and was able to hold it as resistance, the price may fall even further.
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