Bitcoin to $100K Next? Analyst Sees ‘Textbook Perfect’ BTC Price Movement
Bitcoin (BTC) is setting up a classic trading move, which could see it hit a whopping $100,000, an analyst says.
In a chirping On March 14, Charles Edwards, founder and CEO of investment firm Capriole, called the 2023 BTC price action a “bump & run reversal.”
Edwards on BTC price: “the bottom is back”
After passing $26,000 to hit 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 getting analysts excited after the brutal 2022 bear market.
For Edwards, Bitcoin in 2023 has been straight out of the market’s textbooks. The largest cryptocurrency is trying to fulfill a “bump and run reversal pattern”, he believes.
The bottom phase of the bump and run is defined by the investment resource Wealthy Education as follows:
“The bump-and-run reversal bottom is a bullish reversal pattern that begins with a series of declining highs. Excessive speculation drives prices down until they reach extreme lows. The price action then reverses direction to the upside, marking the end of the downtrend.”
“Textbook-Perfect Bitcoin ‘Bump & Run Reversal’ Bottom Is Back and Aims Above $100,000.” Edwards summarized.
Accompanying charts described the bump & run phenomenon, showing BTC/USD in the final stages of the trend break and currently cementing an important resistance/support flip.
What happens next – the so-called “uphill race” – gives the pair a six-figure goal.
However, Edwards acknowledged that like any chart pattern, the bump & run can “fail” and therefore should not be used as the basis of a trading or investment strategy.
Key Bitcoin Price Resistance Ahead
For others, soaring BTC price valuations remain fantasy.
Related: Fed Starts ‘Stealth QE’ – 5 Things to Know in Bitcoin This Week
Just above the current spot price lies an area of major resistance that Bitcoin bulls have been unable to overcome so far. Key moving averages (MAs) on weekly time frames also remain unchallenged.
“Best case scenario for BTC is to break 200 MA on this current move,” trader and analyst Rekt Capital argued on the current interaction between BTC/USD and the 200-week MA.
He showed that previous rejections had produced double-digit losses.
“Obviously the 200 MA weakens as resistance. But what if the 200 MA declines drop by 10% each time?” he continued.
“If BTC fails to break 200 MA soon, could BTC decline by -12%?”
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