The crypto market has seen some tough moments this week, with concerns about the trade war between the US, Canada, Mexico and China. The decision by Strategy (formerly MicroStrategy) to suspend coin purchases also had a negative impact on market sentiment.
As a result, the flagship kriptovalyuta has fallen 5,54% over the past seven days. At the time of writing, BTC was trading around $96,000.
However, according to cryptoanalysts who study technical patterns, Bitcoin is preparing to rebound.
The weekly chart shows that BTC has formed two rare patterns that often lead to significant growth of the asset.
The first is the “cup and handle” which formed between November 2021 and November 2024. This pattern consists of a horizontal line and a rounded bottom forming a cup, followed by some compaction. The profit target is set by measuring the depth of the cup and then measuring the same distance from the top of the cup. In this case, the depth is about 80%, which means that kriptovalyuta will rise to $123,000.
Bitcoin’s recent consolidation appears to be part of a bullish “flag” pattern, which consists of a long vertical line and a rectangle. The flagpole is about 55% of the way up. The distance from the upper side points to a breakout at $166,000.
The downside to this forecast is that it may take some time since it uses a weekly chart. For example, the cup and handle pattern took about three years to form.
