June 20, 2024

Bitcoin Bulls Eye $83,000 if This Technical Pattern Pattern Plays Out

“It is only a matter of time until Bitcoin makes a new all-time high,” said 10x Research CEO Markus Thielen in a note on June 7.

The analyst has observed a “head and shoulders” chart pattern, which is nearing completion. This could result in a “rally towards 83,000 soon,” he said, predicting that this may occur within the next week if resistance is broken.

However, bitcoin did hit resistance and retreated to just over $69,000 on June 7. Nevertheless, the analyst remains bullish, and the chart pattern is still in play.

Bitcoin Still Bullish

“We are bullish,” Thielen said, citing the start of the global central bank easing cycle, which has now been confirmed with interest rates being cut in Canada and Europe this week.

“With US growth, employment, and consumer spending weakening, it will only be a matter of time until inflation slows.”

US employment data was mixed, with the unemployment rate climbing to 4.0%, but an upside surprise was the number of jobs added. However, bitcoin prices have only climbed by 3.1% despite $4.8 billion of inflows during the past week, he said before adding that this was below the projected 5.8% rally predicted by regression analysis.

Thielen provided a detailed analysis of bitcoin’s price movements correlated to inflows of money, suggesting around $13 billion in new inflows would be needed to reach $83,000. A breakout above the $71,600 trend line will result in more upside buying, but $13 billion in inflows “requires quite some commitment,” he said before adding:

“Nevertheless, we think this is possible as a weaker US employment market and lower inflation data next week (3.3%) will likely provide the macro backdrop for new all-time highs.”

Capriole Fund founder Charles Edwards said that long-term holder selling was preventing prices from pushing higher.

BTC was trading at $69,420, and it found support during the Sunday morning Asian session, following a 2.5% decline in the past few days. A further breakdown could see it fall to support levels at $67,500. However, BTC needs to break $71,500 to see any further upward momentum.

Where Next for Ethereum?

Thielen was not so bullish about Ethereum. “Fundamentally, we are less bullish on Ethereum and expect ETF demand for Ether to disappoint,” he said.

Ethereum broke key support at $3,725 in the end-of-week dip in a fall to $3,640, but it managed to reclaim the $3,700 level during early weekend trading.

Zooming out, crypto markets remain within their range-bound channel and in the accumulation zone that typically follows a BTC halving event.

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