• Analyst Charles Edwards believes Bitcoin (BTC) is in the midst of a “bump & run reversal” which could see it hit $100,000.
• The “bump and run reversal bottom” is defined as a bullish reversal pattern where prices reach extreme lows and then reverse direction to the upside.
• Edwards has identified a key resistance/support flip that could pave the way for BTC/USD to reach six figures.
Bitcoin Analyst Predicts Six-Figure Price Target
Analyst Charles Edwards believes Bitcoin (BTC) is in the midst of a “bump & run reversal” which could see it hit $100,000. According to Edward’s analysis, this classic trading move would be fulfilled if BTC/USD breaks through an area of heavy resistance and flips key moving averages (MAs).
What is a Bump & Run Reversal?
The “bump and run reversal bottom” is defined as a bullish reversal pattern where prices reach extreme lows before reversing direction to the upside. This pattern occurs when excessive speculation drives prices down until reaching these extremes levels, after which investors begin buying again.
BTC/USD Resistance Ahead
In order for BTC/USD to reach six figures, it must first break through an area of heavy resistance directly above its current spot price. Key MAs on weekly timeframes likewise remain unchallenged. According to trader and analyst Rekt Capital, the best case scenario for BTC would be breaking the 200 MA on this current move.
Investment Strategy Warning
Despite his enthusiasm for Bitcoin’s potential price action, Edwards warned that any chart pattern could potentially fail and should not be used as an investment strategy without further research. Other analysts have also suggested caution when predicting sky-high valuations for BTC in 2023 or beyond..
Conclusion
An exciting bump & run reversal would see Bitcoin reach $100,000 this year — but analysts agree it will take more than just technical patterns to make this happen. With traders warning against basing investments purely off charts alone, investors should do their own due diligence before making any decisions about their portfolio in 2023 and beyond