This chart shows the trends of three major assets — Bitcoin, gold, and the S&P 500, all following the classic 'cup and handle' pattern. In simple terms, this pattern involves a price first experiencing a period of decline to form a large arc-shaped 'cup', followed by a brief pullback that resembles a 'handle'. When the price breaks above the resistance line of the 'handle', it usually indicates that a strong upward movement is about to occur.
Let's compare:
1.
$BTC: A bottom has formed, currently at the end of the 'handle', feeling like it will break out at any moment, the arrow points straight up.
2. Gold: The breakout has occurred, and prices have surged, validating the bullish strength of this pattern.
3. S&P 500: Following the same path, it has continued to rise after the breakout, with the market rhythm moving steadily upward.
The 'cup and handle' pattern is relatively rare in the market, and it might be a bit difficult to understand, especially since price patterns can often be somewhat subjective. But don't overcomplicate it; you can deconstruct it into multiple 'head and shoulders' patterns. The overall idea is to first build a base, then pull back, and finally break through, accelerating the upward trend.
Price patterns are ultimately a subjective observation of the market. The comparison of the three charts above lets everyone know that this is a thing, but in actual operations, other factors need to be considered for judgment.
