Home Technology Blockchain Bitcoin to extend its 70% surge this year if key charts are right Bitcoin’s revival has helped the digital-asset market add about $390bn in value in 2023 after a $1.5tn rout last year by Bloomberg March 27, 2023 Bitcoin is hurtling toward a quarterly gain bigger than any since the start of 2021, the year when it went on to hit a record high. Some analysts argue the token is being viewed as a hedge against the woes in the US and European banking sectors and benefiting from expectations of looser monetary policy to cushion economies from the fallout of those troubles. “The behaviour of the price through this crisis is going to attract more institutions,” Ark Investment Management’s Cathie Wood said on Bloomberg Television, referring to the unravelling of three US lenders and the emergency takeover of Credit Suisse Group AG by UBS Group AG. Bitcoin’s revival has helped the digital-asset market add about $390bn in value in 2023 after a $1.5tn rout last year. The rebound has weathered crypto bankruptcies, a US regulatory crackdown and the temporary de-peg of a key stablecoin that’s meant to hold a constant $1 value. The rally has paused, leaving the token near $28,000 as traders await the latest Federal Reserve policy decision. Key charts suggest any hiatus or pullback is likely a temporary speed bump on the way to further gains. Read: Bitcoin breaks above $28,000 for first time since June Quarter to remember Bitcoin is up 70 per cent since the start of 2023. A $300bn increase in the Federal Reserve’s balance sheet — part of efforts to support liquidity in the US banking sector — is positive for risk assets and has aided crypto and gold, Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note. Toward $35,000? Bitcoin has traced a reverse head-and-shoulders, a pattern often viewed as bullish. The technical study indicates a price objective of about $35,000. “With interest-rate markets gone from pricing in rate hikes to pricing in rate cuts, there is now a gentle tailwind supporting Bitcoin,” Tony Sycamore, market analyst at IG Australia Pty, wrote in a note. Bitcoin in the clouds Bitcoin has jumped into an area marked by a weekly Ichimoku cloud, an indicator that uses mathematical formulas to help define levels of resistance and support. The break into the cloud signals the potential for further increases. The token could “ride the narrative as a system hedge” and draw succor from central banks being forced to inject liquidity to tackle bank-sector wobbles, Bendik Schei, head of research at K33, wrote in a note. Temporary pullback The DeMARK Sequential indicator — a method of analysing price momentum that tries to anticipate when a market trend has run its course — is flashing red. The study uses a system of counting applied to chart patterns and has printed a nine count that likely presages a pullback, according to the analysis. DeMARK indicators support a neutral short-term bias but other chart patterns could soon point to a “long-term breakout,” Katie Stockton, founder of Fairlead Strategies, wrote in a note. Tags Bitcoin Blockchain 0 Comments You might also like Bitcoin surges above $42,000 for first time since April 2022 GB Tech Web3 Awards 2023: Winners of the second edition announced in glittering ceremony Why digital infrastructure is a cornerstone for the burgeoning growth markets Dubai Harbour: Future Blockchain Summit kicks off on Oct 15