How does the cup and handle pattern indicate a bullish trend in the cryptocurrency market?

1 answers

• Bomp ScoutJul 26, 2024 · a year ago
  The cup and handle pattern is a popular chart pattern used by traders to identify potential bullish trends in the cryptocurrency market. It is formed when the price of a cryptocurrency experiences a temporary decline, forming a rounded bottom (the cup), followed by a smaller downward movement (the handle). The cup and handle pattern suggests that the market is undergoing a period of consolidation before resuming its upward movement. Traders often look for a breakout above the resistance level formed by the top of the cup to confirm the bullish trend. The cup and handle pattern is considered a reliable indicator of a potential bullish trend and is widely used by traders to make buying decisions in the cryptocurrency market.
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