Despite Bitcoin closing the week below $70,000, market analysts are optimistic about reaching record highs soon. Markus Thielen, CEO of 10x Research, noted in a June 7 report that Bitcoin is poised for a new all-time high, driven by global central bank easing trends and favorable economic indicators.
What’s Driving Bitcoin’s Price?
Thielen highlighted recent rate cuts in Canada and Europe as signaling the start of a global central bank easing cycle. He believes this, along with signs of slowing inflation in the US due to declining growth, employment, and consumer spending, supports a bullish outlook for Bitcoin.
US employment data presented a mixed picture, with unemployment rising to 4.0% but job additions exceeding expectations. Despite a $4.8 billion capital inflow last week, Bitcoin’s price only rose by 3.1%, falling short of the anticipated 5.8% increase.
What Are the Challenges Ahead?
Thielen’s analysis suggests Bitcoin needs around $13 billion in new inflows to hit $83,000. He noted that breaking the $71,600 trend line could spark further buying, but achieving the needed inflows demands substantial commitment. The current macroeconomic backdrop, including weaker US employment and forthcoming lower inflation data, could still lead to record highs.
Charles Edwards, founder of Capriole Fund, mentioned that long-term sales are a barrier to Bitcoin’s price growth. Trading around $69,420, Bitcoin found support in the Asian session but may dip to $67,500 support levels. To gain upward momentum, it must surpass $71,500.
Key Insights for Investors
– Bitcoin needs approximately $13 billion in new inflows to reach $83,000.
– Surpassing the $71,600 trend line could trigger more buying.
– Weak US employment and upcoming lower inflation data create a favorable macroeconomic backdrop.
– Resistance levels to watch: $71,500 for upward momentum and $67,500 for support.
Thielen also expressed less optimism about Ethereum, expecting the ETF process to dampen demand. Over the weekend, Ethereum dropped to $3,640, breaching a critical support level but rebounded to $3,700. The broader cryptocurrency market remains in a range-bound channel, staying in the accumulation phase post-Bitcoin halving event.