Bitcoin
‘Head And Shoulders’ will raise Bitcoin to US$83,000, says analyst
Bitcoin (BTC) may be gearing up for a rise to $83,000 as it completes a major bullish price pattern on the daily chart, according to technical analysis from 10x Research.
A price movement above $72,000 would confirm a breakout of an inverted head and shoulders pattern characterized by three price lows, with the middle one being the deepest.
“It is only a matter of time before bitcoin reaches a new all-time high. The head and shoulders formation suggests a rally towards 83,000 soon, with the resistance line likely broken in the coming days. The ideal timing for this resistance is Breakout is today, Friday, June 7th, or next week, Wednesday, June 12th,” said Markus Thielen, founder of 10x Research, in a note shared with CoinDesk.
According to technical analysis theory, the inverted head and shoulders pattern usually forms after a downtrend and reverses the uptrend after a breakout. The pattern rarely appears in an upward trending market, signaling a bullish continuation.
The break above $72,000 depends on US non-farm payrolls data scheduled for release on Friday at 12:30 UTC.
According to Bloomberg, economists’ consensus estimate is that the economy created 180,000 jobs in May, nearly matching the gain of 175,000 in April. The unemployment rate is expected to remain at 3.9% in May. The median estimate for average hourly earnings is for a 0.3% increase, slightly above the April pace, leading to 3.9% 12-month wage growth for the second consecutive month.
Weak data could strengthen the case for Fed rate cuts, adding to upward momentum in risk assets including cryptocurrencies. Some investment banks already expect the central bank to adopt further liquidity easing through a rate cut in July.