Bitcoin Poised for New Highs Despite Recent Dip

While Bitcoin fell short of $70,000 this week, analysts predict a fresh record is on the horizon.

“A new all-time high for Bitcoin is inevitable,” declared Markus Thielen, CEO of 10x Research, in a June 7th note.

Thielen identified a nearing completion of a bullish “head and shoulders” chart pattern. This could trigger “a surge towards $83,000 soon,” potentially within the next week if resistance is surpassed. Although Bitcoin encountered resistance and dipped to just over $69,000, the analyst remains optimistic, and the chart pattern holds validity.

Several factors support Thielen’s bullish stance. First, central banks worldwide are initiating easing cycles, with recent interest rate cuts in Canada and Europe. Second, he expects inflation to slow down due to potential weakening in US growth, employment, and consumer spending.

While US job data showed mixed results, Bitcoin prices haven’t fully reflected positive aspects like exceeding job creation estimates. Thielen highlights this discrepancy, noting the price increase fell short of the predicted 5.8% rally.

His analysis links Bitcoin’s price movements to investment inflows. He estimates roughly $13 billion in fresh inflows are needed to reach $83,000. Overcoming the $71,600 resistance would trigger further buying, but achieving $13 billion “demands significant commitment,” he acknowledges.

However, Thielen believes this is attainable. A weaker US jobs market and potentially lower inflation data next week (predicted at 3.3%) could provide the ideal backdrop for new Bitcoin highs.

Charles Edwards, founder of Capriole Fund, offers a contrasting view, suggesting long-term holder selling is hindering price growth.

Currently, Bitcoin is trading around $69,420, finding support after a recent decline. A further drop could see it test support at $67,500. Conversely, breaking above $71,500 is crucial for renewed upward momentum.

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