Bitcoin’s Weekly Chart Signals Bullish Breakout with Classic “Cup and Handle” Pattern

• Cup and Handle Pattern Signals Bullish Momentum in Bitcoin’s Weekly Chart
• Price Tests Crucial $71,405 Resistance; Breakout Could Lead to New Highs
• High Trading Activity Amidst Slight Sell-off Highlights Investor Interest

Bitcoin’s technical chart patterns reveal a potential bullish breakout, with a classic “cup and handle” formation emerging on the BTC/USD perpetual contract weekly chart on Bybit.

This pattern, often linked to upward price momentum, could signal further gains if current resistance levels are breached. 

The chart displays a gradual “cup” formation starting from the highs of late 2021, followed by a decline through 2022 and a recovery in 2023. 

Source: Doctor Profit

The handle portion, a descending channel formed after the cup, represents a secondary period of consolidation. Price fluctuations in this range have narrowed, potentially setting Bitcoin up for a significant breakout.

Bitcoin’s price is currently testing the upper boundary of this handle pattern, positioned around $71,405.50, a crucial area that could act as a resistance level.  

Bitcoin’s current trading price stands at $71,901.10, representing a minor dip of 0.94% over the past 24 hours. The dip comes amid an overall upward movement, where Bitcoin is up by 5.08% recently, in line with broader bullish sentiment. 

Source: CoinMarketCap

Bitcoin’s market capitalization is valued at approximately $1.42 trillion, reflecting a slight decrease of 0.98% over the past day. Despite this slight sell-off, trading volumes within the same timeframe reached $48.76 billion, though these volumes are down by 8.49%, suggesting moderate trading activity as investors monitor for a potential breakout. 

The supply-side factors are also noteworthy. Bitcoin’s circulating supply stands at 19.78 million BTC out of a total of 21 million, underscoring its limited availability, which could drive long-term value based on scarcity.

The 5-minute Bitcoin chart from October 30th provides insight into Bitcoin’s recent price volatility. After an initial surge that brought the price to a peak of approximately $72,640, Bitcoin encountered resistance, beginning a downward trend. 

Despite attempts to regain upward momentum, resistance at around the $72,500 level created a series of lower highs, reflecting potential market hesitancy or profit-taking behavior among traders. 

This pattern completion and breakout may mark a decisive movement in Bitcoin’s price trajectory, with the classic “cup and handle” formation as a bullish signal. The volume-to-market-cap ratio currently stands at 3.46%, signaling active trading despite a slight downward adjustment.