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Analysts Predict Bitcoin Price Rally as Major Resistance Becomes Strong Support
- RektCapital observed Bitcoin converting a major resistance area into a new robust support level, marking a significant technical achievement.
- Bitcoin has formed a Re-accumulation Range resembling a Bull Flag pattern, indicating potential for continued upward price movement.
- Despite a mixed US employment report and strong dollar potential, upcoming CPI data could propel Bitcoin to new highs.
Crypto analyst RektCapital says Bitcoin has achieved a significant milestone by transforming a major area of old resistance into a new strong support level.
Rekt commented on the development, stating, “Bitcoin has performed a historic technical feat in turning a major area of old resistance into new major support.”
He added:
Bitcoin has since developed a Re-Accumulation Range at these highs which resembles a Bull Flag trend continuation pattern.
RektCapital The Bull Flag pattern, often seen as a bullish continuation signal, is adding to overall market optimism. The pattern typically signifies that after a brief period of consolidation, the price is likely to continue its previous upward trend, suggesting further potential for price increases.
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BTC is up 2.48% in the past seven days, after initially surging from US$69K (AU$104.8K) to almost US$72K (AU$109.4K) from the 5th of June to the 8th of June – to drop back to the US$69K range over the weekend.
US Employment Data Mixed But Could See New Highs For BTC
The US Employment Situation Summary Report revealed stronger than expected job growth, countering analysts’ expectations that weak employment would boost the crypto sector.
In May, job additions reached 272,000, far exceeding the 180,000 forecast, despite slight downward revisions for previous months and a minor uptick in unemployment to 4%. Average hourly earnings also rose more than expected.
However, Markus Thielen, head of Research at 10x Research said the data was mixed pointing to the slight increase in unemployment – therefore not necessarily negatively impacting the crypto sector.
Crypto sold off at the end of Friday without a determining catalyst.
Markus Thielen Thielen also noted that CPI data is due to be released soon, which will likely give the Bitcoin price a push.
We will get the CPI inflation report. If CPI [year-on-year] is 3.3% or lower, it will likely push Bitcoin to new all-time highs.
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Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
