As the cryptocurrency market continues to fluctuate, analysts like Markus Thielen are closely monitoring the movements of Bitcoin. Despite hitting resistance at just over $69,000 on June 7, Thielen remains bullish on the digital currency. He has identified a potential “head and shoulders” chart pattern that is nearing completion, suggesting a rally towards $83,000 in the near future. Thielen attributes this potential surge to the start of the global central bank easing cycle, with interest rates being cut in Canada and Europe. However, he notes that reaching $83,000 would require around $13 billion in new inflows into Bitcoin.
One of the main obstacles preventing Bitcoin from pushing higher is long-term holder selling, as noted by Capriole Fund founder Charles Edwards. Despite finding support at $69,420 during the recent market fluctuations, Bitcoin still faces resistance at the $71,500 level. Thielen emphasizes the need for significant commitment in terms of inflows to drive the price towards new all-time highs. With the US employment market weakening and inflation data expected to decrease, the macroeconomic conditions could provide the necessary backdrop for Bitcoin to break through resistance levels.
Unlike his bullish outlook on Bitcoin, Thielen is less optimistic about Ethereum’s future performance. He points out that fundamental factors may hinder Ethereum’s price growth, particularly in terms of ETF demand for Ether. Ethereum recently experienced a dip below key support levels, dropping to $3,640 before reclaiming the $3,700 level. With the overall crypto market remaining range-bound and in an accumulation phase post-Bitcoin halving, the future of Ethereum remains uncertain.
The cryptocurrency market is poised for continued volatility as analysts assess the potential for Bitcoin and Ethereum to reach new highs. While Bitcoin shows promise of a significant rally towards $83,000, challenges such as long-term holder selling and the need for substantial inflows may impede its progress. Ethereum, on the other hand, faces uncertainties in terms of ETF demand and support levels. Investors and traders are advised to closely monitor market trends and macroeconomic indicators to make informed decisions in this rapidly evolving landscape.