Bitcoin Bulls Eye $83,000 If This Technical Pattern Plays

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

The analyst has observed a “head and shoulders” chart pattern, which is nearing completion. That could lead to a “rally to 83,000 soon,” he said, predicting that could happen next week if resistance is broken.

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

Bitcoin still bullish

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

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

US employment data was mixed, with the unemployment rate rising to 4.0%, but a positive surprise was the number of jobs added. However, bitcoin prices are only up 3.1% despite $4.8 billion in inflows over the past week, he said before adding that this was below the 5.8% rally expected by regression analysis.

Thielen provided a detailed analysis of bitcoin price movements correlated with money inflows, suggesting that it would take about $13 billion in new inflows to reach $83,000. A break above the $71,600 trendline will lead to more buying to the upside, but $13 billion in entries “requires quite a bit of commitment,” he said before adding:

“However, we believe this is possible as a weaker US labor market and lower inflation data next week (3.3%) will likely provide the macro backdrop for new record highs “.

Capriole Fund founder Charles Edwards said the selling of long-term holders was preventing prices from moving higher.

Why aren’t we at $100,000 yet?

US Bitcoin ETFs have acquired 200% of Bitcoin mined since launch in mid-January.

At $71,000, Bitcoin is up 50% since the ETF’s launch, but many are asking why not more? pic.twitter.com/v86Aagvys4

— Charles Edwards (@caprioleio) June 7, 2024

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

Where next for Ethereum?

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

Ethereum broke the key support at $3,725 in the end-of-week decline in a drop to $3,640, but managed to recover the $3,700 level during early weekend trading.

#Ethereum Breaks Key $3725 Support: Was Impending Liquidation Expected? https://t.co/qgpGq32gSK pic.twitter.com/vo2J5zmPFD

— 10x Research (@10x_Research) June 8, 2024

Going further, crypto markets remain within their bounding channel and the accumulation zone that typically follows a BTC halving event.

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