Captain Faibik, a crypto analyst and enthusiast for Bitcoin (BTC), posted on Twitter earlier today to discuss his thoughts on the market leader’s value decisions. In his post, the analyst saw a cup-and-handle configuration on the weekly Perpetual Inverse Swap Contract chart for BTC and expressed his belief that the cryptocurrency may soon experience a breakout.
A cup and handle formation results when the value initially drops, hits a low point, then gradually rises, forming the left, rear, and right sides of the cup. Sometimes a smaller downward motion or consolidation that forms a deal with may occur after the cup has formed.
As soon as the deal is made, the pattern indicates that the value is likely to flee in an upward direction. In this instance, the analyst thought that the value of BTC may increase by an exorbitant $42,000.
Meanwhile, CoinMarketCap reported that BTC’s value dropped little over the previous 24 hours by 0.45%. As a result, the cryptocurrency was worth roughly $26,428.31 at the time of publication. Despite the decline in value, BTC’s weekly efficiency increased by more than 2%. Additionally, the 24-hour trading volume for BTC decreased by roughly 1.63%, leaving it at $9,390,658,134.
Technically, on June 13, 2023, BTC’s value has fallen below the critical assist level at $25,275. For the next 24 hours, it continued to trade below the mark before bulls intervened to give it a much-needed boost, bringing it back above the critical level.
Since then, the market leader’s value has increased to a level above the 9-day EMA line, where it was still trading at the time of publication. Should it close the next 48 hours above the technical signal, BTC’s price may attempt to rise to the next major barrier level above $30K.
However, if BTC’s price closes a daily candle below the 9-day EMA line in the ensuing 48 hours, the cryptocurrency’s value would be vulnerable to declining once more all the way down to the previously indicated support level at $25,275. Nevertheless, if the 9-day EMA line crosses bullishly above the 20-day EMA line, the bullish thesis will most likely be realized.