Technical analysis by Sanhara about Symbol BTC: Buy recommendation (11/21/2024)

Trend AnalysisThe BTCUSDT pair is showcasing a robust upward trend, building on a textbook bullish momentum. Since the beginning of 2023, Bitcoin has been forming higher highs and higher lows, signaling a well-established bullish cycle. The price has decisively broken out of a downward trendline, confirming the transition from bearish consolidation to an expansion phase.Cup-and-Handle PatternA large cup-and-handle formation is clearly visible on the chart, stretching from the 2021 highs to the 2024 breakout. This pattern is a highly bullish structure often seen before explosive upward movements. The neckline of the cup was breached around the $77,000-$78,000 region, and Bitcoin is now heading toward the extension zone of this pattern.Cup Depth: The base of the cup is near $48,000, and the neckline is $77,000, giving the cup a depth of ~$29,000.Measured Move: Based on this pattern, the target lies near $123,000, aligning with the Fibonacci 1.618 extension.Fibonacci ExtensionsThe Fibonacci retracement and extension tools provide a clear roadmap for Bitcoin’s next moves:0.618 Retracement: $77,432 is a critical support zone where price might revisit in case of short-term corrections. This area aligns with the previous consolidation phase and acts as a strong buying region.1.0 Extension: $95,139 serves as the immediate resistance. The price is approaching this level and might face temporary rejection or consolidation here.1.618 Extension: $123,786 is the long-term bullish target, aligning with the cup-and-handle breakout projection.EMA ConfluenceThe chart highlights the importance of Exponential Moving Averages (EMAs) in supporting the bullish momentum:50 EMA (purple): The price is well above the 50-week EMA, which acted as dynamic support during the consolidation phase.21 EMA (blue): The 21-week EMA provided immediate support during minor corrections, indicating strong bullish strength. As long as Bitcoin trades above this EMA, the uptrend remains intact.Channel BreakoutBTCUSDT has broken out of a long-term descending channel that constrained price action during the bear market of 2022-2023. The breakout from this channel signals the end of the consolidation phase and the beginning of a new bullish cycle.Support Zone: The upper boundary of the channel, now acting as support, lies around $77,000-$78,000.Rising Trendline: A shorter-term trendline (black line) indicates steady buying pressure, with prices respecting this support on pullbacks.Key Levels to WatchImmediate Resistance: $95,139 (1.0 Fibonacci extension and psychological level).Critical Support: $77,432-$72,000 (Fibonacci retracement levels and breakout zone of the cup pattern).Long-Term Target: $123,786 (1.618 Fibonacci extension).Sentiment and RiskThe overall sentiment remains bullish, driven by a combination of:Institutional accumulation.Reduced selling pressure post-halving.Broader macroeconomic trends favoring Bitcoin as a store of value.However, traders should remain cautious of profit-taking near resistance zones like $95,000 and potential pullbacks to support levels.ConclusionBTCUSDT is poised for further growth, with clear support levels and an explosive upside target of $123,000. Traders can look for opportunities on pullbacks to the $77,000-$78,000 zone or continuation patterns above $95,000. The alignment of the Fibonacci levels, cup-and-handle formation, and EMA structure strongly support this bullish outlook.