According to analysis shared by renowned cryptocurrency analyst Gert van Lagen, the Bitcoin price chart has illustrated a significant technical pattern on the 3-day chart (BTC/USD) that could potentially signal a rally all the way to $300,000. Known as the “Cup with Handle,” this pattern is prized among traders for its predictive reliability and bullish implications.

Unboxing the giant Bitcoin mug and handle design

The Cup with Handle is a bullish continuation pattern that resembles a cup of tea on the chart. This pattern is formed when price initially falls and then rises, forming a rounded bottom – the “cup” – followed by a smaller downward move – the “handle” – before resuming its upward trajectory.

Cup: This segment of the pattern represents a period of consolidation and recovery. It usually starts at a high price level, gradually descends to a rounded U-shaped low, and rises back to the initial high. In the case of Bitcoin, the cup formation began in November 2021 when the price reached its cycle high of $69,000 and ended in March 2024 after regaining the senior record high, indicating the end of the long-term consolidation phase.

Handle: Following the cup, a slight downward slope creates a handle that is smaller in depth and duration compared to the cup. This usually means final consolidation or a shakeout for less bullish investors before a significant breakout. Bitcoin’s handle has formed over the past few months, showing a tighter price range and lower volatility.

Once an entry is closed, prevailing bullish sentiment and buying pressure often push the price above the previous resistance level – formed by the edge of the cup. This breakout is crucial because it confirms the pattern and sets the stage for future price increases.

The target price after a cup-and-handle breakout can be predicted by measuring the depth of the cup and extrapolating that distance upwards from the breakout point. In Bitcoin’s case, the cup low of around $15,500 compared to the initial high of $69,000 represents a vertical measure.

Related reading: Bitcoin is ‘still significantly undervalued,’ says finance guru Bill Miller IV

Via X, Gert van Lagen stated: “BTC [3D] – A mug with a handle worth PLN 300,000. dollars. Price has broken out of the bull handle/flag and has been retesting it successfully for about four weeks now.”

Perspectives from other analysts

Cryptocurrency analyst Nunya Bizniz criticized the analysis, pointing out differences in results depending on whether measurements are made on a logarithmic or linear scale. According to Bizniz, the linear projection suggests a target near $121,947, while the logarithmic projection could see the price rising to around $309,295.

Measured traffic goals on a logarithmic graph? pic.twitter.com/xiIfBGK8tR

— Nunya Bizniz (@Pladizow) June 13, 2024

Jonathan Hobbs, CFA, added a cautious note to the discussion, suggesting that projections at the higher end of these scales tend to attract significant attention and may disproportionately influence market sentiment. “It looks like we are in the bull market where publishing information about the highest possible targets for Bitcoin generates the most engagement,” he said.

At the time of publication, the BTC price was $67,513.

Featured image created with DALL·E, chart from TradingView.com