A significant technical chart pattern indicates that Bitcoin’s price could potentially reach $85,000, but the digital currency must achieve a weekly close above $71,300 to confirm further upward movement.
The Wyckoff pattern points to a potential breakout for Bitcoin towards the $85,000 level, as indicated by crypto analyst Mikybull. This classic technical analysis setup is named after Richard Wyckoff, a pioneer in technical analysis who divided the market cycle into four distinct phases.
In order to validate more upward momentum, Bitcoin must close the week above $71,300, according to well-known crypto analyst Rekt Capital. Despite this, a key technical indicator on the four-hour chart suggests that Bitcoin’s price may need to stabilize. The relative strength index (RSI) peaked at 74 on June 5 before pulling back to the current level of 68, indicating that the RSI may need to drop to around 50 for Bitcoin’s price to see further upside potential.
The RSI is a widely used momentum indicator that helps determine whether an asset is oversold or overbought based on recent price changes. Continued inflows from U.S. spot Bitcoin exchange-traded funds (ETFs) could help Bitcoin achieve a weekly close above $71,300. On June 5 alone, the U.S. Bitcoin ETFs saw inflows of $488.1 million, with a record inflow day of $886.6 million on June 4. By mid-February, Bitcoin ETFs accounted for approximately 75% of new investments in the leading cryptocurrency as it surpassed the $50,000 milestone.
Please note that this article is not intended as investment advice. All investment and trading decisions involve risks, and readers are advised to conduct their own research before making any decisions.