Charles Edwards, a well-known cryptocurrency analyst and the founder of Capriole Investments, has identified a “textbook flawless” Bitcoin pricing pattern that indicates the flagship cryptocurrency is on track to surpass $100,000 in the near future.
According to a message Edwards sent to his over 100,000 Twitter followers, Bitcoin is exhibiting a “Bump & Run Reversal” pattern, in which an asset’s price drops and is then followed by a “lead-in phase where prices move in a narrow range.” The object then shoots upward to escape the restricted range.
Edwards reminded his followers in a subsequent tweet that chart patterns can fail and should not be utilized as trading or investment strategies. Instead of relying on the chart pattern, he recommended his followers to limit their risks. On March 14, Bitcoin broke through the $26,000 barrier for the first time since June of last year, climbing 17% to an intraday high of $26,500.
The release of the February CPI (Consumer Price Index) report, which confirmed expert projections with a tiny drop in the inflation rate from 6.4% to 6.0% year on year compared to January, is considered as the key cause that aided the cryptocurrency’s price climb. According to CryptoCompare data, BTC is presently trading at $24,800 at the time of writing.
The price of the flagship cryptocurrency dropped a few days ago after the collapse of Silicon Valley Bank and Signature Bank, two of the largest crypto-friendly banks. USDC, the second-largest stablecoin by market cap, lost its peg to the US dollar after it was revealed that $3.3 billion of its reserves were held at Silicon Valley Bank.
The crypto market recovered once the Federal Insurance Deposit Corporation (FDIC) intervened and assured depositors that their funds would be returned. Bitcoin and other digital currencies have been trading higher, while traditional risk assets have been falling.
According to CryptoGlobe, a recent Morgan Stanley analysis recognized Bitcoin’s design as a mechanism for individuals to keep assets in private digital wallets without relying on intermediaries.
Yet, the bank observes that the price of Bitcoin is maintained by USD bank liquidity, causing it to trade as a speculative asset rather than a currency. This link to the old financial system limits Bitcoin’s ability to act independently.
