Charles Edwards, founder of Capriole Investments fund and crypto analyst, has taken to Twitter to share bullish news about a Bitcoin pattern he spotted on a chart recently.
If this pattern plays out, the flagship digital currency may reach the $100,000 level and even surpass it, according to Edwards.
Bitcoin targets $100,000, this pattern shows
Edwards wrote that he has spotted the return of the textbook bullish "Bump & Run Reversal" pattern that has reemerged on a Bitcoin chart. This is a reversal pattern that usually starts with several descending peaks that push the price of an asset to extreme lows.
After that, the asset begins to reverse and shoots to the upside to mark 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
However, the analyst and investor reminds his subscribers that chart patterns often fail and urged the crypto community not to use his tweet as a plan for trading or investing.
Goes without saying, but chart patterns do fail, don't use this as a trading / investment plan. Manage your risks!
Bitcoin surges past $26,000 briefly
On March 14, the crypto locomotive, Bitcoin, soared above the $26,000 mark for the first time since June last year. The main factor that pushed BTC up over 17% to an intra-day high of $26,500 was the release of the February CPI (Consumer Price Index) report that confirmed the predictions of analysts — 0.4% compared to 0.5% in January. Currently, BTC is changing hands at $24,667, according to CoinMarketCap data.
This indicated a slight fall in the inflation rate, namely from 6.4% down to 6.0% year-over-year compared to January.
Current U.S. banking crisis
Prior to that, the digital gold's price went up on the news of the closure of one of the largest U.S. banks — Silicon Valley Bank, and Signature Bank following it. Both banks are to be bailed out by the U.S. government. Another bank shut down before these two, Silvergate. Curiously, all three banks had been dealing actively with crypto exchanges and companies, such as Paxos (the issuer of several stablecoins) and Ripple Labs.
Experts and economists are of the opinion that the current crisis in the banking sphere is likely to drive the Federal Reserve to cut its rate hikes. Now, during the FOMC meeting in March, the Fed is expected to raise the rate by 25 basis points.
Recently, some financial experts on Crypto Twitter have compared the current crisis in the banking sphere to a similar one in Cyprus back in 2013. At that time, this was the major driver that fueled the large growth of Bitcoin, thus pushing the flagship crypto into the mainstream.