Standard Chartered predicts that Bitcoin (BTC) is likely to break through $88,500 this weekend, thanks to the strong performance in the tech sector.
Jeff Kendrick, the global head of digital assets research at the bank, shared these expectations in an exclusive interview with BeInCrypto.
Standard Chartered's Bitcoin Weekend Outlook
Kendrick pointed to the recent price movements of major tech stocks, including Microsoft, as an indicator of Bitcoin's short-term path in an email to BeInCrypto.
"The strongest performers were MSFT and BTC. Today, it's the same situation in Bitcoin spot and tech futures," Kendrick said.
He explained that there is a high likelihood of decisively breaking through the critical level of $85,000 after the US non-farm employment report. The Standard Chartered executive stated that these results would pave the way for a return to the pre-tariff level of $88,500 on Wednesday.
However, China's retaliatory tariffs could increase market uncertainty and potentially drive prices down in the short term. This volatility could weaken investor confidence and obscure the weekend's potential rise.
Kendrick's claims came ahead of the anticipated US employment report, the Non-Farm Payrolls (NFP). This report provides a comprehensive labor market update, including added jobs, unemployment rate, and wage increases.
A strong report could boost confidence in the economy, especially if it comes in higher than the previous 151,000 jobs. This, coupled with a stable unemployment rate of 4.1%, could suppress cryptocurrency rises.
Conversely, if the jobs number is lower than the median prediction of 140,000 and the unemployment rate exceeds 4.1%, it could raise recession concerns. This would drive investors towards Bitcoin and cryptocurrencies.
Standard Chartered could pivot to the latter scenario, with Kendrick emphasizing Bitcoin's growing role as a key asset.
"Bitcoin is showing the best performance as a hedge in various scenarios when stocks rise, with tech stocks rising. I have argued that Bitcoin trades mostly like tech stocks most of the time. At other times, Bitcoin is structurally useful as a hedge against traditional finance," he added.
Standard Chartered is increasingly emphasizing Bitcoin's strategic importance in financial markets. The bank recently identified Bitcoin and Avalanche (AVAX) as potential beneficiaries of cryptocurrency surge after liberation day. BeInCrypto reported this prediction, aligning with recent forecasts that institutional investors may be preparing for market rise.
Additionally, the bank has positioned Bitcoin as an increasingly attractive hedge against inflation. They argue that its limited supply and decentralized nature make it an appealing alternative to traditional safe-haven assets.
Standard Chartered Recommends Bitcoin HODL
As Bitcoin's role in traditional finance (TradFi) grows, Kendrick advised investors to maintain their holdings.
"In the last 36 hours, I think I can add 'US isolation' hedge to Bitcoin's list of uses," he added.
This suggests that Bitcoin could act as a protective asset during geopolitical and macroeconomic uncertainties.
Meanwhile, the BTC/USDT daily chart shows a critical technical setup with Bitcoin currently trading around $82,643. The previous support level of $85,000 now acts as resistance, limiting the leading cryptocurrency's upward potential. The supply zone near $86,508 adds additional selling pressure.
On the downside, the major demand zone between $77,500 and $80,708 provides support. Despite price adjustments, the Relative Strength Index (RSI) is forming higher lows, indicating continued upward momentum and potential reversal.
If BTC successfully recovers $80,000, it could trigger a move to $87,480. However, to confirm the continuation of the uptrend, BTC must close the daily candlestick above $86,508, the midline of the supply zone.
The ascending volume profile (blue) supports this thesis, showing buyers waiting to interact with Bitcoin price above the midline of the supply zone.
Failure to break the immediate resistance at $85,000 could result in retesting the demand zone and potentially falling to lower levels. A breakdown and close below the midline of this zone at $79,186 could worsen the downtrend.
