According to a bullish forecast by 10x Research, Bitcoin (BTC) may be preparing for a significant rally that could reach $83,000 in the coming days.
Analyst Predicts Bitcoin Could Rise to $83 Thousand
Markus Thielen, founder of 10x Research, suggests that Bitcoin is on the verge of completing a major bullish price formation on the daily chart.
A breakout above $72,000 would confirm a breakout from the inverted head and shoulders pattern, which is characterized by three price troughs, with the deepest in the middle.
This pattern typically indicates a downtrend reversal and signals an uptrend following a breakout.
“It's only a matter of time before Bitcoin reaches an all-time high. The head and shoulders pattern indicates an imminent rally towards $83,000, with the resistance line breaking over the next few days. The ideal time to break this resistance is either today, Friday, June 7, or on Friday, June 7th,” Thielen said. “It is next week, Wednesday, June 12,” he said.
The bullish outlook comes ahead of critical US economic data that could impact expectations for a Federal Reserve rate cut.
Economists polled by Bloomberg estimate the economy added 180,000 jobs in May, nearly matching April's gain of 175,000.
While the unemployment rate is expected to remain at 3.9%, the median forecast for average hourly earnings is for a 0.3% increase from April, leading to a 12-month wage increase of 3.9% for the second month in a row.
Weak economic data could strengthen the possibility of a Federal Reserve rate cut, increasing upward momentum in risk assets, including cryptocurrencies.
Some investment banks predict that the central bank may renew liquidity expansion with an interest rate cut in July.
*This is not investment advice.