Technical analysis by Royalfxsignal about Symbol BTC: Buy recommendation (5/4/2025)

BTC/USD Weekly Chart Analysis – Cup & Handle BreakoutAsset: Bitcoin (BTC/USD)Timeframe: Weekly (1W)Pattern: Cup and Handle (Bullish Continuation)Date of Analysis: May 4, 2025Source: Bitstamp🔍 Pattern Explanation: Cup and HandleThe 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 LevelsLevelPriceDescriptionResistance~$71,000Horizontal neckline of the cup and breakout pointSupport~$60,000 – $65,000Zone formed at handle lows and previous supportBreakout Area~$72,000Breakout above handle confirms bullish momentumCurrent Price$95,902Trading above breakout – uptrend confirmedTake Profit 1$117,946Midpoint target based on handle breakoutFinal Target$133,082Full measured move from cup depthStop Loss$50,617Below handle base, invalidates the setup📊 Trade Setup SummaryParameterValueEntry$72,000 breakout confirmation or current pullback buy ($95K)Stop Loss (SL)~$50,617 – Below handle base supportTake Profit (TP1)$117,946 – Intermediate targetTake Profit (TP2)$133,082 – Full measured move🔄 Measured Move CalculationCup Depth ≈ $71,000 (resistance) – $50,000 (cup base) = $21,000Target = Breakout Point ($71K) + Depth ($21K) = 92K, extended target exceeds $133K based on market momentum.📈 Technical Indicators & ConfirmationWoodies 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 NotesSet 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.✅ ConclusionBitcoin 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.