The Bitcoin (BTC) price chart is forming an inverted head and shoulders pattern, and a break above $72,000 could lead to a rebound to $83,000.
Bitcoin (BTC), the world’s largest cryptocurrency, has been sitting at $71,000 for quite some time, with some on-chain indicators hinting at a potential surge. All eyes are now on next week’s Federal Reserve meeting, as central banks in Europe and Canada have already pivoted to cutting interest rates.
Bitcoin (BTC) price could surge to $83,000, showing a bullish pattern on the daily chart, according to the latest report from 10x Research. A rise above $72,000 confirms a break from the inverted head and shoulders pattern marked by three lows, with the middle low being the most prominent.
Provides: 10x Research
Markus Thielen, founder of 10x Research, said in a recent note: “It’s only a matter of time before Bitcoin hits an all-time high. The head and shoulders pattern suggests an imminent rally towards 83,000, with resistance likely to be broken within a few days. The ideal time for this resistance to break is today, Friday 7 June, or next week, Wednesday 12 June.”
Bitcoin Derivative Data
Bitcoin (BTC) traders hit a new milestone as open interest on BTC tracking futures soared to an all-time high, surpassing $37.7 billion late Thursday. This performance surpassed the previous high of approximately $37 billion observed in mid-March, matching Bitcoin’s new high of $73,700.
According to data from CoinGlass, more than $5 billion in open interest has been added since Monday, during which time the BTC price rose from around $68,500 to $71,000. Among the companies contributing to record open interest, the Chicago Mercantile Exchange (CME) leads the way with $11 billion in total bets, followed closely by cryptocurrency exchange Binance with $8 billion.
The significant long-short ratio indicates a prevailing bullish sentiment among traders, reflecting confidence in Bitcoin’s upward trajectory.
BTC Options Expiration
Greeks.Live provided an overview of options data on June 7, revealing that 18,000 BTC options expired with a put-call ratio of 0.67, Maxpain points of $70,000, and a notional value of $1.25 billion.
Currently, BTC’s key-period implied volatility (IV) is around 50%, while ETH’s key-period IV is hovering around 55%, with both declining to reasonable levels.
Going forward, the probability of the BTC market this month is expected to be closely correlated with macro news, especially the Federal Reserve’s interest rate cut.
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