What is the cup and handle pattern and how does it affect the target price of a cryptocurrency?

1 answers

• May 02, 2022 · 3 years ago
  The cup and handle pattern is a popular chart pattern used in technical analysis to predict future price movements in cryptocurrencies. It consists of a cup-shaped formation followed by a smaller handle formation. The cup represents a period of consolidation, where the price reaches a high and then retraces. The handle formation is a smaller consolidation period that typically forms after the cup. When the price breaks out of the handle formation, it is expected to continue its upward trend. The target price is often calculated by measuring the distance from the bottom of the cup to the breakout point and adding it to the breakout price. However, it's important to note that the cup and handle pattern is not always reliable and should be used in conjunction with other technical indicators and fundamental analysis for better accuracy.
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