Bitcoin could be about to hit $83,000 in the near future as it ends a significant bullish price pattern on its daily chart, as analyzed by 10x Research.
The potential rise to $83,000 would be validated by a price move above $72,000, indicating a breakout of an inverted head and shoulders pattern. Markus Thielen, founder of 10x Research, predicts that this breakout will occur today, Friday, June 7, or next week, Wednesday, June 12.
This inverted head and shoulders pattern usually forms after a downtrend and suggests a reversal of the uptrend following a breakout. These patterns are rarely seen in uptrend markets, indicating a bullish continuation.
The probability of a break above $72,000 depends on the release of US nonfarm payrolls data scheduled for Friday at 12:30 UTC. Economists’ consensus estimates suggest a gain of 180,000 jobs in May, nearly matching the gain of 175,000 in April. The unemployment rate is expected to remain unchanged at 3.9% in May, and average hourly earnings are projected to increase 0.3%, resulting in trailing-12-month wage growth of 3.9% for the second month in a row.
If the data shows any weakness, it could lead the Federal Reserve to consider cutting interest rates. This could fuel the bullish trend of risk assets such as cryptocurrencies. Many financial experts expect the central bank to implement a rate cut in July to stimulate liquidity.
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