Another chart pattern

Bitcoin still looking to have turned the corner after that strong rally. Although the market is taking a little breather now, the way it is pushing up through my horizontal dotted resistance is quite nice.

Heres a bitstamp chart showing latest action with 4hour candles.

Note the way the rally ended when it reached one of my green trendlines, giving me yet more confidence of that slope.

What is intriguing me at the moment is another chart pattern, after the inverse head and shoulders is that looking like a cup has formed? Will price drop and give us a handle?

I guess the target of that pattern completing would be up above $600. Lets see if I can do it again! 😀

A while back I posted a chart of Litecoin / Bitcoin ratio which I thought might be nice to revisit, so here it is again.

It is looking like that ratio is still following the script and litecoin may be destined to lag behind bitcoin for a while but I’m thinking might get into some litecoin before too long, if history repeats it could look pretty sweet.

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6 thoughts on “Another chart pattern

  1. So we are at about 50% of the high of the last bubble… If history repeats itself, would you say we are equivalent to being around the $130 dollar mark back in September 2013? We hit the all-time high less than 3 months later in December, so if history repeats itself, all-time highs in the $5000 range by late July to mid-August?

  2. My understanding is that Cup & Handles are not bottoming formations — they are continuation patterns. Generally, you want to see right-side buying volume inside the cup greater than the left-side selling, and for volume to wane significantly in the handle while price does not retrace more than 50% of the height of the right rim measured from the trough. There are also Cup w/o Handles, but again, they are continuation patterns as well.

    1. I guess you could point to the bottom of the cup as the second bottom of a double bottom .. ? Although the second bottom is higher than the first. And the cup as continuation of the rally from there.

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