The Bitcoin (BTC) price chart is forming an inverse head and shoulder pattern and a breakout above $72,000 could push it rallying all the way to $83,000.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
The world’s largest cryptocurrency Bitcoin (BTC) has been holding onto $71,000 for quite a while with some on-chain indicators hinting at a potential surge ahead. All eyes are currently on next week’s Fed meeting as central banks in Europe and Canada have already pivoted by cutting interest rates.
As per the latest report from 10x research, Bitcoin (BTC) price could surge all the way to $83,000 with a bullish price pattern on the daily chart. A move above $72,000 would validate a breakout from an inverted head-and-shoulders pattern, marked by three price troughs, with the middle one being the most pronounced.
Courtesy: 10x Research
In its recent note, Markus Thielen, founder of 10x Research, said: “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”.
Bitcoin (BTC) traders have set a new milestone as open interest in BTC-tracked futures surged to an all-time high, surpassing $37.7 billion late on Thursday. This achievement eclipses the previous peak of nearly $37 billion observed in mid-March, coinciding with Bitcoin’s fresh highs of $73,700.
According to data from CoinGlass, over $5 billion in open interest has been added since Monday, with BTC prices climbing from around $68,500 to $71,000 during this period. Among the contributors to the record open interest, the Chicago Mercantile Exchange (CME) leads with bets totaling $11 billion, followed closely by crypto exchange Binance at $8 billion.
The substantial long-short ratio indicates a prevailing bullish sentiment among traders, reflecting confidence in Bitcoin’s upward trajectory.
Greeks.Live provided an overview of the June 7 Options Data, revealing that 18,000 BTC options expired with a Put Call Ratio of 0.67, a Maxpain point of $70,000, and a notional value of $1.25 billion.
Currently, BTC’s major term implied volatility (IV) stands around 50%, while ETH’s major term IV hovers around 55%, both of which have decreased to reasonable levels.
Looking ahead, the probability of this month’s BTC market is expected to be strongly correlated with macro news, particularly regarding the Federal Reserve’s interest rate cut.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
