What strategies can cryptocurrency traders use to take advantage of the bearish cup and handle pattern?

3 answers

• May 01, 2022 · 3 years ago
  One strategy that cryptocurrency traders can use to take advantage of the bearish cup and handle pattern is to wait for a confirmed breakout below the handle. Once the breakout occurs, traders can enter a short position and set a stop-loss order above the handle's resistance level. This strategy allows traders to profit from the downward movement of the price. It's important to note that traders should always conduct thorough technical analysis and consider other indicators before making any trading decisions.
  515

  258
• May 01, 2022 · 3 years ago
  Another strategy is to wait for a pullback after the breakout below the handle. Traders can enter a short position when the price retraces to a predetermined level, such as a Fibonacci retracement level or a support-turned-resistance level. This strategy allows traders to enter the market at a better price and potentially increase their profits. However, it's crucial to set a stop-loss order to limit potential losses in case the price reverses.
  448

  150
• May 01, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, suggests that traders can also use a combination of technical analysis and fundamental analysis to take advantage of the bearish cup and handle pattern. Traders can look for bearish signals in the price chart, such as a downward trendline or a bearish divergence in the RSI indicator. Additionally, they can analyze the fundamental factors that may contribute to the bearish sentiment, such as negative news or regulatory changes. By combining these analyses, traders can make more informed trading decisions.
  551

  138