Decentral Block Post

Bitcoin (BTC) is setting up a classic trading move, which could see it hit $100,000, one analyst says.

In a tweet on March 14, Charles Edwards, founder and CEO of investment firm Capriole, called BTC price action in 2023 a “bump & run reversal.”

Edwards on BTC price: The “bottom is back”

Having passed $26,000 to hit new nine-month highs this week, BTC/USD is in the midst of a recovery rarely seen before.

Despite cooling under $25,000 at the time of writing, longer timeframes are already getting analysts excited after the brutal 2022 bear market.

For Edwards, Bitcoin in 2023 has been straight out of the market’s textbooks. The largest cryptocurrency is attempting to fulfill a “bump and run reversal pattern,” he believes.

The investment arm of major cryptocurrency exchange KuCoin is moving to support new stablecoin initiatives by backing a Chinese yuan-pegged stablecoin issuer.

KuCoin Ventures has led a $10 million investment into stablecoin issuer and blockchain-based payment service provider known as CNHC.

Announcing the news on March 16, KuCoin Ventures said that the funding round included some prominent industry investors, including KuCoin’s investor IDG Capital and Circle Ventures, the investment arm of the USD Coin (USDC) issuer, Circle.

KuCoin chief investment officer and KuCoin Ventures lead Justin Chou told Cointelegraph that the new investment in CNHC is the first time for KuCoin Ventures to invest in a stablecoin-related project.

“KuCoin is always interested in building a stronger infrastructure for the financial system,” Chou said, adding that the world is likely to see more real world asset-backed stablecoins in the near future. He added:

Bitcoin (BTC) received a substantial boost this week as United States inflation levels for February were in line with market expectations. On March 14, the BTC/USD pair surged to a 2023 peak at $26,550 after the news.

But, while the macroeconomic conditions may currently favor risk-on buyers, certain on-chain and market indicators hint at a potential correction in the near term.

BTC flows back to exchanges as price rises

On March 13, Glassnode’s exchange flow data recorded the most significant inflow to exchanges since May 2022. This means more supply on exchanges and potentially higher selling pressure.

The coin days destroyed indicator, which measures the time-weighted transfers of Bitcoin, also shows a small spike, indicating that old hands are moving coins. The indicators might signal profit booking by long-term holders, which can lead to a correction.

Bitcoin funding rates, RSI jump

Moreover, the funding rate for Bitcoin perpetual swaps is also elevated with the latest Consumer Price Index print. In other words, more traders are betting on the upside with leveraged positions, increasing the risk of a correction.

Ethereum-based noncustodial lending protocol Euler finance is trying to cut a deal with the exploiter that stole millions from its protocol, demanding the hacker returns 90% of the funds they stole within 24 hours or face legal consequences.

The platform was exploited for $196 million on March 13 and Euler Labs sent its ultimatum to the flash loan attacker by transferring them 0 Ether (ETH) with an attached message on March 14:

“Following up on our message from yesterday. If 90% of the funds are not returned within 24 hours, tomorrow we will launch a $1M reward for information that leads to your arrest and the return of all funds.”

The threat of law enforcement comes as Euler sent the hacker a much more civil message the day before.

“We understand you are responsible for this morning’s attack on the Euler platform,” it read. “We are writing to see whether you would be open to speaking with us about any potential next steps.”