Bitcoin (BTC) May Rally to $83,000 as It Nears Completion of Bullish Pattern

The bullish forecast comes ahead of key U.S. data that is likely to influence Fed rate cut expectations.

A close above $72,000 would confirm a breakout from an inverted head-and-shoulders pattern on the daily chart. Such a breakout could lift bitcoin to $83,000, as per 10x Research.

The analysis comes ahead of key U.S. data that is likely to influence expectations regarding Fed rate cuts.

Bitcoin (BTC) may be setting up for a rise to $83,000 as it completes a major bullish price pattern on the daily chart.

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.

CoinDesk technical analysis contributor 10x Research highlighted this setup in a note on Thursday, with a breakout expected within the next few days.

"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," 10x Research founder Markus Thielen noted in the analysis 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.

"A strong payrolls print would put pressure on the Fed to continue raising rates and could lead to a short-term top in bitcoin. However, a weak print could bolster the case for rate cuts and add to the bullish momentum in risk assets," the analysis noted.

Economists polled by Bloomberg expect, on average, the U.S. economy to have created 180,000 jobs in May, nearly matching April's 175,000 gain. The unemployment rate is set 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. A stronger-than-expected reading in wage growth could heighten inflation concerns.

Some investment banks, including Barclays (BARC.L) and Deutsche Bank (DB), now expect the Fed to pivot to rate cuts in July. Such a shift in monetary policy stance would bode well for risk assets like bitcoin.