Bitcoin
Bitcoin Hits New All-Time High Next Week, But Ethereum Holds It Back
Crypto research firm 10x Research has warned that a sharp decline in Ethereum prices could prevent Bitcoin of reaching a new sustainable all-time high of over $83,000, according to a June 7 analysis shared with CryptoSlate.
Over the past week, the price of ETH has suffered considerably compared to the price of Bitcoin. The second-largest digital asset fell around 1.2% in the period, while the price of BTC rose more than 3%. Although not explicitly explained in the note, 10x Research believes that Ethereum could contain Bitcoin from a sentiment perspective.
10x Research, citing Ethereum’s future position, noted that traders were more willing to bet on BTC. Additionally, the company predicted that demand for ETH exchange-traded funds (ETFs) would fall short of expectations.
He stated:
“Ether futures positioning is already stretched and, as the SEC’s Gary Gensler said this week, It might take a while until these (S-1) ETH ETFs are approved. The increase in ETH futures positioning stood at $0.3 billion this week as traders prefer to buy exposure to Bitcoin at this time. [recording] US$2.2 billion. The numbers speak for themselves.”
How BTC Can Reach a New ATH
Meanwhile, the firm believes that Bitcoin could soon reach a new all-time high of $83,000 if it breaks a key technical pattern as early as today, June 7, or by Wednesday, June 12.
Markus Thielen, CEO of 10x Research, said:
“It is only a matter of time before Bitcoin reaches a new all-time high. The head and shoulders formation indicates a rally towards $83,000 soon, with the resistance line likely to break in the coming days.”
The company attributed its optimistic outlook to recent global economic activity, including interest rate cuts in Canada, Denmark and Europe. The forecast also considers a US job market and a potential decline in inflation as factors supporting the new ATH.
10x Research further explained that it typically takes around $800 million or $8 billion in inflows to increase the price of Bitcoin by 1% and 10%, respectively. These inflows come from various sectors, including Bitcoin ETFs, which recently accounted for 35% of total Bitcoin inflows.
Therefore, to achieve a 5% weekly Bitcoin recovery, the market would need $4.2 billion in inflows, with Bitcoin spot ETFs selling US$1.7 billion. However, to reach its new projected all-time high of $83,000, 10x Research expects Bitcoin to require more than $13 billion in inflows across sectors. Added:
“A break above the $71,600 trendline will naturally result in more positive buying across multiple products, but $13 billion [in inflows] It requires a lot of commitment. However, we think this is possible as a weaker US jobs market (4.0% unemployment rate) and lower inflation data next week (3.3%) will likely provide the macro backdrop. to new all-time highs.”