BTC/USD Weekly Chart Analysis – Cup & Handle Breakout

BTC/USD Weekly Chart Analysis – Cup & Handle Breakout
Asset: Bitcoin (BTC/USD)
Timeframe: Weekly (1W)
Pattern: Cup and Handle (Bullish Continuation)
Date of Analysis: May 4, 2025
Source: Bitstamp

🔍 Pattern Explanation: Cup and Handle
The Cup and Handle is a classic bullish continuation pattern that signals consolidation followed by breakout potential. It consists of two main components:

The Cup – A rounded bottom resembling a “U” shape. This shows a shift in market sentiment from bearish to bullish. The price declines gradually, finds a base, and then climbs back toward the previous highs (resistance).

The Handle – A smaller consolidation (pullback) that forms after the cup. It typically slopes downward or sideways, indicating a pause before the next bullish impulse. A breakout above the handle signals the start of the next move.

In this chart, BTC formed a perfectly rounded cup from late 2021 through mid-2023, followed by a handle consolidation throughout early 2024. The breakout occurred in early 2025, confirming the pattern.

📏 Technical Levels
Level Price Description
Resistance ~$71,000 Horizontal neckline of the cup and breakout point
Support ~$60,000 – $65,000 Zone formed at handle lows and previous support
Breakout Area ~$72,000 Breakout above handle confirms bullish momentum
Current Price $95,902 Trading above breakout – uptrend confirmed
Take Profit 1 $117,946 Midpoint target based on handle breakout
Final Target $133,082 Full measured move from cup depth
Stop Loss $50,617 Below handle base, invalidates the setup

📊 Trade Setup Summary
Parameter Value
Entry $72,000 breakout confirmation or current pullback buy ($95K)
Stop Loss (SL) ~$50,617 – Below handle base support
Take Profit (TP1) $117,946 – Intermediate target
Take Profit (TP2) $133,082 – Full measured move

🔄 Measured Move Calculation
Cup Depth ≈ $71,000 (resistance) – $50,000 (cup base) = $21,000

Target = Breakout Point ($71K) + Depth ($21K) = 92K, extended target exceeds $133K based on market momentum.

📈 Technical Indicators & Confirmation
Woodies CCI (6,14) = +68 → Bullish zone, but approaching overbought levels; indicates continued strength with potential pullbacks.

Volume: Breakout occurred with rising volume, confirming the strength behind the move.

Market Structure: Higher highs and higher lows have emerged since the handle breakout – confirms trend reversal and continuation.

🛡️ Risk Management Notes
Set stop loss tightly below the handle base to minimize risk (~$50,617).

Consider scaling out near the first TP ($117K) and trailing the stop for extended profits.

Reentry opportunities may occur on retests of $80K–$90K zones.

Monitor for macro events (e.g. ETF approval, rate decisions, crypto regulation) that could impact volatility.

✅ Conclusion
Bitcoin has completed a textbook Cup and Handle pattern on the weekly timeframe, signaling the potential for a significant bullish continuation. With a clean breakout above $71,000 and strong follow-through, BTC now eyes intermediate targets at $117,946 and final projection near $133,082.

This setup is ideal for swing or position traders aiming to ride the momentum of a confirmed breakout with strong historical reliability.