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Standard Chartered predicts Bitcoin will likely break above $88,500 this weekend, citing tech sector performance as a key indicator.
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A strong US Non-Farm Payrolls report could boost Bitcoin’s price, while a disappointing one may drive investors to Bitcoin as a hedge.
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Bitcoin’s role as a hedge in uncertain times is growing, with Standard Chartered advising investors to “HODL” Bitcoin amid geopolitical and macroeconomic concerns.
Standard Chartered forecasts Bitcoin’s potential to surpass $88,500 amidst tech sector trends and macroeconomic indicators, advising investors to hold.
What Standard Chartered Says About Bitcoin This Weekend
In an email to COINOTAG, Kendrick pointed to recent price action among major technology stocks, including Microsoft, as an indicator of Bitcoin’s short-term trajectory.
“Strongest performers were MSFT and BTC. Same again so for today in Bitcoin spot and tech futures,” Kendrick said.
Magnificent 7 Price Performance vs. Bitcoin and ETH. Source: Standard Chartered
He explained that a decisive break above the critical $85,000 level appears likely post-US non-farm payrolls. The Standard Chartered executive elaborated that such an outcome would pave the way for a return to Wednesday’s pre-tariff level of $88,500.
However, China’s retaliatory tariffs could increase market uncertainty, driving prices down in the short term. This volatility might dampen investor confidence, overshadowing any weekend gains.
Kendrick’s assertions come ahead of the much-anticipated US employment report, Non-Farm Payrolls (NFP). The report is expected to provide comprehensive updates on the labor market, encompassing jobs added, the unemployment rate, and wage growth.
A robust report could bolster confidence in the economy, especially if it exceeds the previous reading of 151,000 jobs. This is compounded if accompanied by a steady 4.1% unemployment rate. Such an outcome could limit crypto gains if the dollar strengthens.
Conversely, a disappointing tally, particularly one falling below the median forecast of 140,000 jobs with unemployment rising beyond 4.1%, could ignite recession fears. This scenario may compel investors to seek refuge in Bitcoin and other cryptocurrencies.
Standard Chartered appears to lean towards the latter outcome, with Kendrick emphasizing Bitcoin’s rising significance as an investment.
“Bitcoin is proving itself to be the best of tech upside when stocks go up and also as a hedge in multiple scenarios… I argued that Bitcoin trades more like tech stocks than it does with gold most of the time. At other times, and structurally, Bitcoin is useful as a TradFi hedge,” he added.
Standard Chartered increasingly stresses Bitcoin’s strategic role within financial markets. The bank recently identified Bitcoin and Avalanche (AVAX) as potential beneficiaries of a post-Liberation Day crypto surge. COINOTAG reported this forecast, aligning it with the current one, which indicates institutional investors may be preparing for a market upswing.
Furthermore, the bank emphasizes Bitcoin as a growing hedge against inflation, asserting that its limited supply and decentralized nature position it as an attractive substitute for traditional safe-haven assets.
Standard Chartered Calls to HODL Bitcoin
In light of Bitcoin’s strengthening role in traditional finance (TradFi), Kendrick advised investors to retain their holdings.
“Over the last 36 hours, I think we can also add ‘US isolation’ hedge to the list of Bitcoin uses,” he noted.
This suggests that Bitcoin could serve as a protective asset amid geopolitical and macroeconomic uncertainties.
Meanwhile, the BTC/USDT daily chart reveals a critical technical setup, with Bitcoin’s price currently around $82,643. The former support level of $85,000 now acts as resistance, limiting the pioneer cryptocurrency’s upward potential. The supply zone near $86,508 imposes additional selling pressure.
Bitcoin (BTC) Price Performance. Source: TradingView
On the downside, a critical demand zone between $77,500 and $80,708 provides support. Despite price consolidation, the Relative Strength Index (RSI) is forming higher lows, indicating sustained momentum and a potential price reversal.
If BTC successfully reclaims $85,000, it could encourage a move towards $87,480. However, to validate the continuation of the uptrend, BTC needs to achieve a daily candlestick close above the midline of the supply zone at $86,508.
The bullish volume profile supports this hypothesis, indicating that bulls are prepared to engage with the Bitcoin price above the midline of the supply zone.
Failure to breach the immediate resistance at $85,000 could lead to a retest of the demand zone, with the potential to break lower. In this directional bias, a break and close below the midline of this zone at $79,186 could exacerbate the downtrend.
Conclusion
Standard Chartered’s latest insights reinforce Bitcoin’s evolving role in a fluctuating economic landscape. Investors are navigating through pivotal financial indicators, and the strategic call to “HODL” reflects growing confidence in Bitcoin as a hedge and an asset class likely to benefit from technological advancements and market dynamics.
