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Bitcoin set to extend its 70% surge this year if key charts are right

Bitcoin is headed for bigger gains than any quarter since the start of 2021, the year it hit record highs.

Some analysts argue that the token is being viewed as a hedge against the crisis in the US and European banking sectors and is benefiting from expectations of looser monetary policy to soften the economy from the fallout of those troubles.

 

“The price action through this crisis is going to attract more institutions,” Cathy Wood of Arc Investment Management said on Bloomberg Television, referring to the emergency acquisition of three US lenders and Credit Suisse Group AG by rival UBS Group AG.

 

Bitcoin’s revival has helped the digital-asset market add about $390 billion in value in 2023 after last year’s $1.5 trillion rout. The rebound has faced crypto bankruptcies, a US regulatory crackdown and a temporary de-peg of a major stablecoin that purported to hold a sustained $1 value.

 

The rally has stalled this week, sending the coin closer to $28,000 as traders await the latest Federal Reserve policy decision. The main charts suggest that any gap or pullback is a temporary momentum bump in the way of further gains.

 

quarter to remember

chart

 

Bitcoin is up 70% since the start of 2023. The Federal Reserve’s $300 billion increase to its balance sheet last week – part of efforts to support liquidity in the US banking sector – is positive for risk assets and has aided crypto and gold, research by Chris Weston Pepperstone Group Ltd. the chief wrote in a note.

 

Toward $35,000?

 

chart

 

Bitcoin has traced a reverse head-and-shoulders pattern, a pattern often viewed as bullish. Technical study indicates price objective of approx.
$35,000. “As interest rate markets have moved from pricing in rate hikes to pricing in rate cuts, there is now a gentle tailwind to support bitcoin,” Tony Sycamore, market analyst at IG Australia Pty, wrote in a note.

 

in the cloud

chart

Bitcoin has jumped into the area marked by the weekly Ichimoku cloud, an indicator that uses mathematical formulas to help define resistance and support levels. The breaking of the cloud indicates the possibility of further upside. The token could “ride the narrative as a systemic hedge” and may be forced to inject liquidity from central banks to deal with bank-sector volatility, Bendik Ski, head of research at K33, said in a note. written.

temporary pullback

chart

 

The DeMARK Sequential Indicator – a method of analyzing price action that tries to predict when a market trend has run its course – is flashing red. According to the analysis, the study uses a system of counting applied to the chart pattern and prints a 9 count which potentially represents a pullback. DeMARK indicators support a neutral short-term bias, but other chart patterns may point to a “long-term breakout” soon, Katie Stockton, founder of Fairlead Strategies LLC, wrote in a note.

 

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