A technical chart pattern is indicating that Bitcoin’s price could potentially reach $85,000, but the cryptocurrency must close above $71,300 on a weekly basis to confirm further upward movement.
According to crypto analyst Mikybull, the Wyckoff method suggests that Bitcoin could break out to $85,000. The Wyckoff accumulation pattern, named after Richard Wyckoff, a pioneer of technical analysis, breaks down the market cycle into four distinct phases.
In order to validate the potential for more upward momentum, Bitcoin needs to close above $71,300 weekly, as explained by popular crypto analyst Rekt Capital. However, a key technical indicator on the four-hour chart shows that Bitcoin’s relative strength index (RSI) may need to cool down before further price increase. The RSI peaked at 74 on June 5 and currently stands at 68, suggesting fair value. A drop to around 50 on the RSI could indicate more upside momentum for Bitcoin.
The RSI is a widely used indicator to determine if 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 close above $71,300 for the week. On June 5, U.S. Bitcoin ETFs saw inflows of $488.1 million, with a record inflow day of $886.6 million on June 4. By February 15, Bitcoin ETFs represented approximately 75% of new investments in the cryptocurrency as it crossed the $50,000 mark.
This article does not provide investment advice. Readers should conduct their own research before making any investment decisions, as all investments involve risk.