Bitcoin’s value has been on the rise since the US released the latest Consumer Price Index (CPI) yesterday. The digital currency surged to over $26,500, but has since experienced a sharp correction. At the time of writing, Bitcoin was trading at $24,868, below key resistance at $25,200.
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.”
This could be great news for Bitcoin investors, as the price could potentially reach new heights in the near future. Edwards’ analysis is based on a chart pattern known as a “Bump & Run Reversal,” which is often a sign of a market bottom. So, if you’re thinking of investing in Bitcoin, now may be the time to do so!
Here’s What The Bitcoin Bump And Run Reversal Implies
The Bump and Run Reversal pattern is a reversal pattern that is created when there is too much speculation, which drives the prices down too far and too fast until it reaches extreme lows. The pattern was developed by Thomas Bulkowski and was also included in his book, “Encyclopedia of Chart Patterns”.
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 trendline.
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 continuing its steady rise. The uphill run is the final phase of the pattern, with the price reaching new highs before leveling off or dropping. For Bitcoin, this phase began in May 2022 and is still ongoing.
At the end of the bump phase, BTC experienced a strong uptrend in January 2023, causing the price to break the trend line. 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.