Recent analysis by 10x Research CEO Markus Thielen suggests that Bitcoin is on the verge of reaching a new all-time high. Thielen has identified a “head and shoulders” chart pattern that is close to completion, indicating a potential rally towards $83,000 in the near future. Despite facing some resistance and retreating to just over $69,000 on June 7, Thielen remains bullish on Bitcoin’s prospects, citing the start of a global central bank easing cycle as a positive sign.
Thielen points to recent interest rate cuts in Canada and Europe as evidence of weakening growth, employment, and consumer spending in the US, which could eventually lead to a slowdown in inflation. However, despite positive employment data in the US, Bitcoin prices have only seen a modest increase of 3.1% following $4.8 billion of inflows. Thielen’s analysis suggests that around $13 billion in new inflows would be needed to push Bitcoin to $83,000.
While a breakout above the $71,600 trend line could lead to more upside buying, achieving $13 billion in inflows may require significant commitment from investors. Charles Edwards, founder of Capriole Fund, also notes that selling from long-term holders is currently limiting Bitcoin’s upward momentum. Bitcoin is currently trading at $69,420, with support levels at $67,500 and a need to break $71,500 for further gains.
Outlook for Ethereum and the Crypto Market
Thielen is less optimistic about Ethereum’s prospects, suggesting that ETF demand for Ether may disappoint. Ethereum recently fell below key support at $3,725 before rebounding to reclaim the $3,700 level. In the broader crypto market, prices remain range-bound, with Bitcoin having recently gone through a halving event and entering an accumulation phase.
While Bitcoin appears to be on the cusp of reaching new all-time highs, there are several challenges and uncertainties that could impact its trajectory. Investors should closely monitor key support and resistance levels, as well as broader market trends, to make informed decisions about their cryptocurrency holdings.
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