Investor Dan Tapiero says that Bitcoin (BTC) is setting up for a breakout after printing a massive bullish technical pattern.
Tapiero says that Bitcoin is forming a large, years-long cup and handle structure that is setting BTC up for a breach of the March 2024 highs at $74,000.
A cup-and-handle formation is typically viewed as a bullish continuation pattern, suggesting that an asset is taking a breather after a steep rally before taking out a key resistance level.
But according to Tapiero, Bitcoin can still go through a period of sideways consolidation before witnessing a convincing breakout.
“If that ain’t a cup and handle, I don’t know what is.
Just a great day today across the board.
Stronger payrolls and liquidity-driven BTC and ETH still trading well.
Break of the March highs and we launch. Could still do a little chop chop but days like today confirm…
[Ethereum] has achieved network effect. Only BTC and ETH are in this category, but SOL is moving in this direction as well. This is not an emotional appeal. I’m just looking at usage, revenues, community build, years in existence etc.”
Tapiero expects crypto staking, which typically offers higher yields compared to traditional financial products, to be a key component for the next bull market.
“Powerful driver of this crypto up cycle will be yield (yes, again).
3% on staked ETH now better than 2% on euro two-year, 1.4% on China two-year.
US two-year at 3.7% but expect 2% next year.”
The investor adds that China has opened the liquidity floodgates to stimulate its economy. According to Tapiero, the move is a huge bullish catalyst for Bitcoin.
“Huge macro event.
Things so bad in China, the government flinches.
QE (quantitative easing) for China equity.
Rate cuts.
Big liquidity coming.
Low likely in for China assets.
Bazooka.
Bullish gold, BTC.”
At time of writing, Bitcoin is trading at $63,648, up 3% in the past day.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: DALLE3
Read the full article here