If Important Charts Are Accurate, Bitcoin's 70% Increase This Year Will Continue

Bitcoin is quickly approaching its biggest quarterly gain since the beginning of 2021, the year it eventually reached a record high.

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Some observers contend that the token benefits from anticipation of looser monetary policy to buffer economies from the consequences of the problems in the US and European financial sectors and is being seen as a hedge against such problems.

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After the collapse of three US banking and the emergency buyout of Credit Suisse Group AG by rival UBS Group AG, Ark Investment Management's Cathie Wood stated on Trade Algo "the behavior of the price during this crisis is going to attract additional institutions."

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After a $1.5 trillion collapse in value in 2018, Bitcoin's resurgence has helped the digital asset market gain around $390 billion in value in 2023. The recovery has withstood cryptocurrency bankruptcies, a regulatory crackdown in the US, and the unexpected de-peg of a significant stablecoin that was intended to maintain a fixed $1 value.

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As traders wait for the most recent Federal Reserve policy announcement, the rise has stalled this week and the token is now hovering around $28,000. Crucial charts indicate that any pause or setback is probably only a short bump in the road on the route to further gains.

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Remember This Quarter

Since 2023 began, Bitcoin has increased by 70%. According to Chris Weston, the research director at Pepperstone Group Ltd., a $300 billion increase in the Federal Reserve's balance sheet last week as part of efforts to bolster liquidity in the US banking system is favorable for risk assets and has helped bitcoin and gold.

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About $35,000?

Bitcoin has shown a reverse head-and-shoulders pattern, which is frequently considered bullish. According to the technical analysis, the price objective is around $35,000. According to Tony Sycamore, market analyst at IG Australia Ltd, "there is now a slight tailwind favoring Bitcoin" as interest-rate markets have switched from pricing in raising rates to pricing in rate decreases.

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Clouds High

Bitcoin has moved into a zone that is indicated by a monthly Ichimoku cloud, an indicator which uses mathematics to assist identify levels of support and resistance. The cloud's split indicates the possibility of additional gains. According to Bendik Schei, the research director at K33, the token may "ride the narrative as a system hedge" and benefit from central banks being compelled to inject liquidity to address bank-sector tremors.

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Temporary Retraction

The DeMARK Sequential indicator, a technique for assessing price momentum that seeks to foretell when a market trend has peaked, is flashing red right now. According to the analysis, the study employs a system of counting that is applied to chart patterns, and it has produced a 9 count that most likely portends a downturn. Although other chart patterns may eventually suggest to a "long-term breakout," Katie Stockton, the founder of Fairlead Strategies LLC, noted in a note that DeMARK indications support a negative short-term bias.