The bullish forecast comes ahead of key U.S. data that is likely to influence Fed rate cut expectations.
Bitcoin (BTC) may be setting up for a rise to $83,000 as it completes a major bullish price pattern on the daily chart, according to technical analysis by 10x Research.
A price move above $72,000 would confirm a breakout from an inverted head-and-shoulders pattern, characterized by three price troughs, with the middle one being the deepest.
“It is only a matter of time until bitcoin makes a new all-time high. The head-and-shoulders formation suggests a rally towards 83,000 soon, with the resistance line likely broken within the next few days. The ideal time for this resistance to break is either today, Friday, June 7, or next week, Wednesday, June 12,” Markus Thielen, founder of 10x Research, said in a note shared with CoinDesk.
According to technical analysis theory, the inverted head-and-shoulders pattern usually forms after a downtrend and reverses the trend upwards after a breakout. The pattern rarely appears in an upward-trending market, signaling a bullish continuation.
The breakout above $72,000 hinges on the U.S. nonfarm payrolls data scheduled for release on Friday at 12:30 UTC.
According to Bloomberg, economists’ consensus estimate is that the economy created 180,000 jobs in May, nearly matching April’s 175,000 gain. The unemployment rate is expected to remain at 3.9% in May. The median estimate for average hourly earnings is a 0.3% increase, a tick above April’s pace, leading to a 12-month wage growth of 3.9% for the second consecutive month.
Weak data may strengthen the case for Fed rate cuts, adding to upward momentum in risk assets, including cryptocurrencies. Some investment banks already expect the central bank to pivot to renewed liquidity easing via a rate cut in July.
Source: Crypto Insider