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Bitcoin poised to reach new record high next week while Ethereum limits its progress – 10x Research
Crypto research company 10x Research has cautioned that a significant drop in Ethereum prices may hinder Bitcoin from achieving a sustainable new all-time high exceeding $83,000, as per a June 7 analysis shared with CryptoSlate.
In the past week, ETH‘s price has notably struggled in comparison to Bitcoin’s price. The second-largest cryptocurrency decreased by approximately 1.2% during this timeframe, while BTC‘s price increased by over 3%. Although not explicitly detailed in the report, 10x Research suggests that Ethereum could impede Bitcoin from a sentiment standpoint.
10x Research, referencing Ethereum’s prospective position, observed that traders were more inclined to speculate on BTC. Furthermore, the firm anticipated that the demand for ETH exchange-traded funds (ETFs) would not meet expectations.
It stated:
“Positioning in Ether futures is already stretched, and as SEC Chair Gary Gensler mentioned this week, it may take some time before those (S-1) ETH ETFs receive approval. Futures positioning in ETH has lagged this week at $0.3 billion as traders prefer to acquire Bitcoin exposure at this moment, [recording] $2.2 billion. The figures are telling.”
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Meanwhile, the firm believes Bitcoin could achieve a new all-time high of $83,000 soon if it breaks a crucial technical pattern as early as today, June 7, or by Wednesday, June 12.
Markus Thielen, the CEO of 10x Research, stated:
“It’s only a matter of time before Bitcoin reaches a new all-time high. The head-and-shoulders formation suggests a rally toward $83,000 soon, with the resistance line likely breaking in the coming days.”
The firm attributed its optimistic outlook to recent global economic developments, including interest rate reductions in Canada, Denmark, and Europe. The forecast also takes into account a weaker US employment market and a potential decrease in inflation as factors supporting the new ATH.
10x Research further clarified that it generally requires about $800 million or $8 billion in inflows to elevate Bitcoin’s price by 1% and 10%, respectively. These inflows originate from various sectors, including Bitcoin ETFs, which recently represented 35% of total Bitcoin flow.
Thus, to achieve a weekly Bitcoin rally of 5%, the market would need $4.2 billion in inflows, with Bitcoin Spot ETFs accounting for $1.7 billion. However, to reach its anticipated new all-time high of $83,000, 10x Research expects Bitcoin to need over $13 billion in inflows across all sectors. It added:
“A breakout above the $71,600 trend line will naturally lead to increased buying through multiple products, but $13 billion [in inflows] requires considerable commitment. Nonetheless, we believe this is feasible as a weaker US employment market (unemployment rate at 4.0%) and lower inflation data next week (3.3%) will likely create the macro backdrop for new all-time highs.”
The post Bitcoin set for new all-time high next week but Ethereum holds it back – 10x Research appeared first on CryptoSlate.
