Bitcoin is in the midst of a “rapid and accelerating reversal” that requires a big upside, says Capriole CEO Charles Edwards.
bitcoins
bitcoins
clicked downwards
$24,974
it’s plotting a classic trade move, which could reach $100,000, says one analyst.
In a March 14 tweet, Charles Edwards, founder and CEO of investment firm Capriole, called BTC’s price action in 2023 a “rapid turnaround.”
Edwards on the price of BTC: the “bottom is back”
After breaking above $26,000 to make new nine-month highs this week, BTC/USD is in the midst of a recovery rarely seen before.
Despite cooling below $25,000 at the time of writing, longer timeframes are already exciting analysts following the brutal bear market of 2022.
For Edwards, Bitcoin in 2023 is straight out of the textbooks of the market. The biggest cryptocurrency is trying to meet a “bump and run reversal pattern,” he believes.
The bottom stage of the bump and run is defined by the Wealthy Education investment resource as follows:
“The bullish reversal bottom is a bullish reversal pattern that starts with a series of descending highs. Excessive speculation drives prices down to extreme lows. The price action then reverses direction to the up and signals the end of the down trend.
“Bitcoin’s ‘Bump & Run Reversal’ perfect fund is back and the goal is over $100,000.” Edwards summed up.
The accompanying charts depicted the bullish bullish phenomenon, showing BTC/USD in the later stages of its trend break and consolidating a key resistance/support reversal.
What happens next – the so-called “rise to the top” – gives the pair a six-figure target.
However, Edwards acknowledged that, like any chart pattern, the bounce and run can “fail” and should not be used as the basis for a trading or investing strategy.
Major Bitcoin price resistance ahead
For others, sky-high BTC price valuations remain a fantasy.
Related: Fed Starts “Slinky QE” – 5 Things to Know About Bitcoin This Week
Directly above the current spot price is an area of strong resistance that Bitcoin bulls have not been able to overcome so far. The major moving averages (MAs) on weekly time frames also remain unchallenged.
“The best-case scenario for BTC is to break the 200 MA with this current move,” said trader and analyst Rekt Capital regarding the current interaction between BTC/USD and the 200-week MA.
He has shown that previous rejections have resulted in double-digit losses.
“Clearly, the 200 MA is fading into resistance. However, what if the rebounds from 200 MA decrease by 10% each time? He continued.
“If BTC fails to clear 200 MA soon, could BTC decline to -12%?”
