Bitcoin is Heading Towards $90,000 According to This Technical Model

Bitcoin’s recent price moves have caught traders’ attention, with technical analysis suggesting a potential bullish rally.

At the time of writing, the price of Bitcoin is $67,200, with a daily trading volume of $38.7 billion. Despite the recent 1.3% drop, analyst Sjuul of AltCryptoGems pointed to a possible bullish “Cup & Handle” pattern forming on the BTC/USDT chart.

Technical analysis

The Cup & Handle pattern is a bullish chart formation that is used by traders to identify potential long positions. This pattern is characterized by a “U” shape (the cup) followed by a slight downward movement (the handle). According to Sjuul, Bitcoin appears to be forming a remarkable Cup & Handle formation, which typically indicates a bullish trend.

Sjuul describes two possible trading scenarios with this pattern. The first scenario involves a deeper pullback along the handle channel. In this case, traders can look to enter the market at the green area where the former resistance level has become support, complemented by the 4H EMA200. This area is considered ideal for buying if a decline occurs.

The second scenario occurs if the bulls continue to push higher. In this case, traders will wait for a break of the Cup & Handle pattern by entering at the breakout level. In both scenarios, the critical factor is to see a breakout and surpass the resistance level; otherwise the validity of the pattern is compromised.

If the Cup & Handle pattern holds and breaks, the technical target should match the depth of the low point of the cup. Sjuul estimates this target will be around the $90,000 level. This potential spike represents a significant opportunity for traders, highlighting the importance of closely monitoring BTC’s movement