Bitcoin, Teacup, 1 hour candle chart

[Pipdips]

I am looking at the 1 hour chart and it is clearly in a teacup pattern.  What usually happens after the teacup handles?  Price goes up?  Down?  How do technical analysis experts interpret teacups?

[Theb]

Are you referring to the cup and handle pattern? If it is then you are right Bitcoin might be forming a "teacup" pattern on its hourly chart and it's generally a bullish pattern, the only problem is where are nowhere near the handle part as of the moment and this might not be a cup and handle pattern at all we still have to reach the 10,000$ level to form the "cup" part of it and the only way to confirm it is to check out Bitcoin after 7-8 candles have been formed. Lastly hourly charts are not ideal if you aren't looking to profit on a day's end, if you look at the daily chart it ain't forming any cup and handle pattern and this might just be a break out for the short term period.

[Pipdips]

I was looking at the 1 hour candle for the Bitcoin chart at Trading View.  It looks like the handle is coming soon?  So that means it will be bullish afterwards?  How about if the handle does not come, it will be bearish?

[Theb]

I was looking at the 1 hour candle for the Bitcoin chart at Trading View.  It looks like the handle is coming soon? 

Like I said the cup hasn't even formed yet, it needs to reach at least the 10,000$ level for it to form a cup and then proceed and try and form a handle, if it goes down now then this isn't a cup and handle pattern

So that means it will be bullish afterwards?  How about if the handle does not come, it will be bearish?

Yes we can be bullish afterwards that's if the cup and handle formation becomes successful. But anytime now this formation can be invalidated with just a quick breakdown of the pattern, meaning if we have red candles on its succeeding hours.

[ChrisPop]

It's called a "cup-n-handle" pattern and until now it is just the cup. If we create the handle and break out of it then I'm looking for a measured move from the bottom of the cup to its high. That would put us at around $11200 price zone. However from my experience you shouldn't put much weight on a pattern that is forming on the 1H timeframe as it tends to be more sloppy. But suit yourself, everyone has its own trading style after all.

[leowonderful]

Could be possible, though I also agree that you should hold off trading too preemptively because things can and often do change last minute with Bitcoin. The current hourly candle seems like a good candidate for the beginning of the handle section of the pattern after the upwards wicks into resistance on the last few hourly candles, though this is also being bought up pretty rapidly at the moment too. We'll have to see how this forms, but it's a definite possibility. We could also just range around here for a bit, though there's room for a strong break in either direction at the moment.

[gantez]

However from my experience you shouldn't put much weight on a pattern that is forming on the 1H timeframe as it tends to be more sloppy. But suit yourself, everyone has its own trading style after all.

Nice one there friend, this above means you are quite experienced as you said. I was to talk about that before reading your post. One hour isn't reading too good for trend check but perfect to make an order.

On that too, it is not skillful to preempt the market. It is better you have seen the candle closed before confirming what candle was form then to analyse the market.

In this kind of market, assumption have no place because candles can change at anything because of demand and supply process.

[Theb]

So things didn't look goo already for this cup and handle pattern as we only have the highest wick to reach around 9,950$ which isn't ideal for a good cup and handle pattern. Now we are attempting to form the handle part which really has a low chance of being bullish now. I would still monitor for the last “U” to form and see where it will take the prices but I wouldn't say that will have a bullish reversal in this pattern.

[Pipdips]

However from my experience you shouldn't put much weight on a pattern that is forming on the 1H timeframe as it tends to be more sloppy. But suit yourself, everyone has its own trading style after all.

Nice one there friend, this above means you are quite experienced as you said. I was to talk about that before reading your post. One hour isn't reading too good for trend check but perfect to make an order.

Hey thanks guys. Yeah I learned something new from this. Thanks.

FYI, I use Trading View for charts and Today the 1 hour chart looks different than when I posted this topic a few days ago!  There were some red candles that stopped the tea cup pattern.

Now, would you say the price is moving sideways?  And consolidating in the range of $9,300-9,500 ??