Bitcoin Could Lift to $83K in the Coming Days, Analyst Says

If the price surpasses $72,000, it will signal a breach of an inverted head-and-shoulders chart formation. This pattern is distinguished by three price dips, where the middle one represents the most significant decline.

According to Markus Thielen of 10x Research, the head-and-shoulders formation in Bitcoin’s price chart indicates that a new all-time high around $83,000 is imminent. This potential rally could see the resistance line being breached as early as this Friday, June 7, or next Wednesday, June 12.

As a researcher studying technical analysis, I’ve observed that the inverted head-and-shoulders pattern emerges during a downtrend and typically signals a trend reversal toward an uptrend after a breakout. This pattern is quite uncommon in an upward-trending market, suggesting a potential bullish continuation instead.

The significance of Bitcoin surpassing the $72,000 mark relies heavily on the US nonfarm payrolls report due out on Friday at 12:30 UTC.

Based on Bloomberg’s report, economists generally predict that the economy generated approximately 180,000 new jobs in May, which is close to the 175,000 positions added in April. The unemployment rate is projected to stay constant at 3.9% for May. The anticipated median growth for hourly wages is a slight 0.3% rise, slightly faster than April’s pace, resulting in a year-over-year wage increase of 3.9% for the second month in a row.

As a crypto investor, I’m keeping a close eye on the potential impact of weak data on the Federal Reserve’s monetary policy. If the economic indicators continue to show weakness, it could bolster the case for rate cuts. Such cuts would add fuel to the upward momentum in risk assets, including cryptocurrencies. Some investment banks have even predicted that the Fed will make a move towards renewed liquidity easing as early as July by cutting interest rates.