I’ve been waving my hands around in the air and chanting, and for good measure gazing into some tea leaves and come up with this idea for whats about to unfold.. Disclaimer – blah blah not my fault if this doesn’t happen.
Previously when I’ve thought about the cup n handle formation I’ve thought about it as a horizontal pattern, where the April high would form one side and the other side would have spiked at about the same price as that April high. However now I’m thinking I should factor in the slope provided by my ‘take off’ chart.
Heres what it looks like with that slope factored in..
The base of the cup is at say $150 with the top of the cup estimated at about $365 ish. There will then follow a decline in price to form the handle maybe down to $250 ish ?
The cup n handle is a bullish formation http://www.investopedia.com/terms/c/cupandhandle.asp
Based on this, if it plays out of course, bitcoins would fall to about $250 ish over the next month or so and then a new rally would begin with a target of $550 – $600 ish
Sounds good to me, now to sit back and be proved totally wrong.