The hard fork of Bitcoin, Bitcoin Gold, is currently forming a cup and handle pattern. A cup and handle pattern is a bullish continuation pattern that consists of a ‘U’ or a ‘V’ shaped bottom followed by a period of consolidation. Technical analysts typically anticipate a bullish breakout to occur after the period of consolidation.

Bitcoin Gold was forked from Bitcoin to assess the ASIC domination of Bitcoin mining. While the original Bitcoin can now only be mined profitably with specialized hardware devices, Bitcoin Gold has changed the algorithm so that GPUs can competitively mine the altcoin.

Bitcoin Gold has undergone huge depreciation since it forked. After reaching highs of around $480 in November 2017, the coin now trades at around $26. The security of the coin is also seriously questionable with a 51% attack on the network successfully executed in May.

Despite these attacks, Bitcoin still ranks 22nd in terms of total market capitalization of cryptocurrencies. Although the technical analysis is pointing toward bullish movements and the 50 SMA has moved up to cross over the 100 MA, analysts will have to balance the technical analysis along with the fundamentals of the project. The risk of buying into a bullish set up such as this one is another 51% attack could occur and spark a huge sell-off.

Bitcoin Gold [BTG] to Break Out of Cup & Handle Pattern? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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