Bitcoin appears to be on the cusp of reaching a new all-time high, according to 10x Research CEO Markus Thielen. Thielen has observed a “head and shoulders” chart pattern that is nearing completion, which could potentially result in a rally towards $83,000. Despite hitting resistance and pulling back to just over $69,000 on June 7, Thielen remains bullish on Bitcoin’s future prospects. He attributes this optimism to the start of the global central bank easing cycle, as well as weakening US economic indicators that may lead to a decrease in inflation.
Thielen’s analysis suggests that around $13 billion in new inflows would be needed for Bitcoin to reach $83,000. He notes that while Bitcoin saw $4.8 billion of inflows during the past week, this is below the projected 5.8% rally predicted by regression analysis. However, he remains confident that $13 billion in inflows is achievable, especially if the US employment market continues to weaken and inflation data remains low. A breakout above the $71,600 trend line could signal more upside buying momentum for Bitcoin.
Charles Edwards, founder of Capriole Fund, believes that long-term holder selling has been preventing Bitcoin prices from pushing higher. Despite US Bitcoin ETFs acquiring 200% of the Bitcoin mined since their launch in mid-January, Bitcoin’s price has only increased by 50% since then. This has led many to question why Bitcoin has not yet reached $100,000. BTC was trading at $69,420 at the time of Edwards’ comments, with support levels at $67,500 and resistance at $71,500 potentially shaping its future price movements.
While Bitcoin’s outlook appears positive, Thielen is less optimistic about Ethereum’s prospects. He anticipates that ETF demand for Ether may disappoint, leading to a less bullish stance on the cryptocurrency. Ethereum recently broke key support at $3,725 but managed to reclaim the $3,700 level during early weekend trading. Overall, the crypto markets remain in a range-bound channel following a BTC halving event, with Ethereum facing potential liquidations as it navigates key support levels.
In conclusion, Bitcoin is poised for a potential rally towards $83,000, driven by global easing measures and weakening US economic indicators. While challenges such as resistance levels and long-term holder selling persist, the overall sentiment remains bullish. Ethereum, on the other hand, faces uncertainties surrounding ETF demand and price fluctuations, indicating a less favorable outlook compared to Bitcoin. As the crypto markets continue to navigate key support and resistance levels, investors and traders should monitor developments closely to capitalize on potential opportunities.
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