Charles Edwards, a popular cryptocurrency analyst and the founder of Capriole Investments, has pointed to a “textbook perfect” Bitcoin price pattern that shows the flagship cryptocurrency is targeting surpassing the $100,000 mark in the future.
According to a tweet Edwards shared with his over 100,000 followers on the microblogging platform, Bitcoin is showing a “Bump & Run Reversal” pattern, which sees an asset’s price endure a drop-off that is then followed by a “lead-in phase where prices move in a narrow range.” The asset then shoots upward to leave that narrow range.
In a follow-up tweet, Edwards cautioned his followers that chart patterns can fail, and should not be used as trading or investment plans. He advised his followers to manage their risks, instead of relying on the chart pattern.
On March 14, Bitcoin surged above the $26,000 mark for the first time since June last year, rising over 17% to an intra-day high of $26,500.
The release of the February CPI (Consumer Price Index) report, confirming predictions of analysts with a slight fall in the inflation rate from 6.4% to 6.0% year-over-year compared to January, is seen as the main factor that helped the cryptocurrency’s price rise. At the time of writing, BTC is now changing hands at $24,800, according to CryptoCompare data.
~The price of the flagship cryptocurrency tumbled days ago after Silicon Valley Bank and Signature Bank, two of the largest crypto-friendly banks, collapsed. The second-largest stablecoin by market capitalization, USDC, lost its peg to the US dollar after it was revealed $3.3 billion of its reserves were kept at Silicon Valley Bank.
The crypto market rebounded after the Federal Insurance Deposit Corporation (FDIC) stepped in and assured depositors would be made whole. Bitcoin has seen been trading up, along with other digital currencies, while other risk assets have been plunging.
As CryptoGlobe reported, a recent report from Morgan Stanley has acknowledged Bitcoin’s design as a way for individuals to store value in private digital wallets without relying on intermediaries.
Nevertheless, the bank notes that Bitcoin’s price is supported by USD bank liquidity, causing it to trade as a speculative asset rather than a currency. This connection to the traditional banking system undermines Bitcoin’s potential to act independently.
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