Capriole CEO Charles Edwards says that Bitcoin (BTC) has created a classic price structure where it can reach 6-digit prices with a serious rise.
Could $100,000 be next for Bitcoin (BTC)?
Charles Edwards, founder and CEO of investment firm Capriole, in a tweet on March 14, described BTC price action in 2023 as “bump and bounce”.
The ‘bump and return’ is a bullish reversal pattern that starts with a series of descending peaks. Excessive speculation drives prices down until they reach extreme lows. Price action then reverses direction and marks the end of the downtrend.
Textbook perfect Bitcoin "Bump & Run Reversal" bottom is back and the target is over $100,000. pic.twitter.com/w1dvI2r57Q
— Charles Edwards (@caprioleio) March 15, 2023
“Dip is back”
Having crossed $26,000 this week to new nine-month highs, BTC is in the midst of a rarely seen recovery before. Despite falling below $25,000 at the time of writing, it’s already getting analysts excited in the long run, after the brutal 2022 bear market.
For Edwards, Bitcoin was out of the market’s textbooks in 2023. The biggest crypto is trying to realize a “multiply and return pattern”. “The textbook-perfect Bitcoin ‘Bump & Run Reversal’ bottom is back and the target is over $100,000,” the Capriole founder sums up.
Bump & Run Reversal, what levels are Bitcoin pointing to?
The accompanying charts describe the bullish and breakout phenomenon, showing BTC price in the final stages of a trend breakout, consolidating a key resistance/support reversal. What happens next – the so-called “uphill run” – gives the double a six-figure goal.
Still, Edwards notes that like any pattern, hits and runs can “fail” and should not be used as the basis for positioning or investment strategy.
Bitcoin’s critical resistance levels approaching
Just above the current spot price lies an area of heavy resistance that Bitcoin bulls have been unable to overcome so far. The key moving averages (MAs) on the weekly timeframes were similarly unbeatable.
“The best scenario for BTC is to break the 200 MA in this current move,” says trader and analyst Rekt Capital about the current interaction between BTC price and the 200-week MA. Previous refusals had resulted in double-digit losses.
Best case scenario for #BTC is to break the 200 MA on this current move
Clearly, the 200 MA is weakening as resistance
However, what if the 200 MA rejections are declining by 10% each time?
If $BTC fails to break the 200 MA soon, could BTC reject by -12%?#Crypto #Bitcoin pic.twitter.com/eOojgNxVFM
— Rekt Capital (@rektcapital) March 14, 2023
Positive inflation data showed its effect on BTC
The cryptocurrency market gained double-digit value after the US CPI data announced on March 14. cryptocoin.com We have stated that Bitcoin has climbed to $ 26,400 during this time. CPI expresses the change in the current prices of goods in a given year according to the prices in the base period. Market players are now identifying the Fed meeting on March 22, which is likely to cut interest rates.
