Recent analysis by 10x Research CEO Markus Thielen suggests that Bitcoin is on the verge of making a new all-time high, potentially rallying towards $83,000 in the near future. Despite hitting resistance and a slight retreat to just over $69,000, Thielen remains bullish on the cryptocurrency. The “head and shoulders” chart pattern he observed indicates a possible breakout, especially if key resistance levels are broken.
Thielen points to several factors driving the potential price increase of Bitcoin. He cites the start of the global central bank easing cycle, with interest rates being cut in Canada and Europe. Additionally, with weakening US growth, employment, and consumer spending, Thielen predicts a slowdown in inflation. This macroeconomic backdrop could pave the way for new all-time highs in Bitcoin.
However, there are challenges to overcome for Bitcoin to reach the projected price levels. Thielen notes that despite significant inflows of $4.8 billion in the past week, Bitcoin prices have only seen a modest 3.1% increase, falling short of the expected 5.8% rally. He estimates that around $13 billion in new inflows would be needed to push Bitcoin to $83,000, a task that would require substantial commitment from investors.
Capriole Fund founder Charles Edwards points out that long-term holder selling is currently hindering Bitcoin from making significant upward movements. BTC found support around $69,420 following a recent decline and could potentially fall further to support levels at $67,500. Breaking the $71,500 mark is crucial for Bitcoin to gain momentum upwards.
Thielen expresses a less bullish stance on Ethereum, citing expectations of disappointing ETF demand for Ether. Despite breaking key support levels, Ethereum managed to reclaim some ground during weekend trading. The future outlook for Ethereum remains uncertain as the crypto market continues to consolidate within its range-bound channel.
While Bitcoin analysts predict a new all-time high in the near future, there are challenges and uncertainties that need to be addressed. Investors should remain cautious and attentive to key resistance levels and market trends to make informed decisions. The cryptocurrency market remains volatile, and careful analysis and risk management are essential for successful trading strategies.