Bitcoin Forms Bump And Run Reversal Bottom, Target Is Over $100,000
March 15 2023 - 3:10AM
NEWSBTC
After Bitcoin soared to over $26,500 following yesterday’s release
of the Consumer Price Index (CPI) in the US, the price experienced
a sharp correction. The BTC price briefly fell just below $24,000.
At the time of writing, Bitcoin was trading at $24,868, below key
resistance at $25,200. However, Charles Edwards, founder of
Capriole Investments, has spotted an extremely bullish chart
pattern for Bitcoin that could propel the price to over $100,000.
Via Twitter, Edwards wrote, “Textbook perfect Bitcoin ‘Bump &
Run Reversal’ bottom is back and the target is over $100,000.”
Here’s What The Bitcoin Bump And Run Reversal Implies The Bump And
Run Reversal (BARR), as the name suggests, is a reversal pattern
that occurs when excessive speculation drives prices down too far,
too fast, until it reaches extreme lows. The pattern, developed by
Thomas Bulkowski, was also included in his book “Encyclopedia of
Chart Patterns”. Related Reading: Bitcoin And Crypto Respond
Bullish To February’s CPI At 6.0% The pattern consists of three
main phases: the lead-in, bump, and uphill run. As Edwards shows in
the chart below, the Bitcoin price has formed the lead-in phase in
the 3-day chart from November to 2021 to May 2022, which begins
with a series of descending peaks that are instrumental to the
initiating trend line. The bump phase begins with a sharp drop,
with the price moving further away from the trendline. This phase
began for Bitcoin in June 2022 when the price experienced a sharp
drop before further bumps occurred, driving the price to new
extreme lows. At the end of the bump phase, BTC experienced a
strong uptrend in January 2023, causing the price to break the
trend line. Related Reading: Bitcoin Price Corrects Sharply But
This Support Might Spark Another Increase Both in mid-February and
yesterday, there was a throwback to the trendline, where the BTC
price bounced upwards. With this, Bitcoin has confirmed the
beginning of the uphill run phase, which starts when the pattern is
broken. This phase could take Bitcoin to over $100,000 by mid-2024,
according to Edwards. More Bullish Chart Patterns The Capriole
Investments founder also found two more reasons to be bullish on
the short to medium term. Edwards shared the following two charts
and said via Twitter: Head & Shoulders and Wyckoff Accumulation
at the last resistance level before $30K. Close this week above $25
and it doesn’t get much better from old school technicals
perspective. For now, resistance at $25,200 remains the most
important level that Bitcoin needs to break through to build
bullish momentum. Back in February, the price was rejected three
times at the resistance. Yesterday’s breakout did not last, which
is why it remains the boundary for the start of a new bull run.
Featured image from iStock, Chart from TradingView.com
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