A key technical chart pattern suggests that Bitcoin’s price could be headed to the $85,000 mark, but the world’s first cryptocurrency needs a weekly close above $71,300 to confirm more upward momentum.
Wyckoff pattern targets $85,000 Bitcoin price
Technical analysis using the Wyckoff method points to a potential Bitcoin price breakout to the $85,000 mark, according to crypto analyst Mikybull.
The analyst wrote in a June 6 X post to his 67,000 followers:
“Bitcoin Wyckoff’s playbook is still in play. SOS soon that will bring it to $85k.”
BTC/USD, Wyckoff pattern. Source: Mikybull
Wyckoff accumulation is a classic technical analysis setup named after Richard Wyckoff, a technical analysis pioneer in the first half of the 20th century who broke down the market cycle into four distinct phases.
The phases of the Wyckoff market cycle. Source: TradingCoach.co.in
Bitcoin needs a weekly close above $71,300
Meanwhile, to confirm more upward momentum, Bitcoin needs to perform a weekly close above the $71,300 mark, according to popular crypto analyst Rekt Capital.
The analyst explained in a June 5 YouTube video:
“We’re still in an accelerated cycle. Instead of 260 days ahead of schedule, we’re ahead 170 days, but this could rapidly change if we get a weekly candle close above this range high resistance [$71,300] which is essentially a monthly flag.”
BTC/USDT, 1-month chart. Source: Rekt Capital
However, Bitcoin’s price may need to cool down based on a key technical indicator seen on the four-hour chart. Bitcoin’s relative strength index (RSI) peaked at 74 on June 5 before retracing to the current 68 level, according to TradingView.
While this suggests that Bitcoin is trading at fair value, the RSI may need to fall to around the 50 mark before BTC’s price can see more upside momentum.
BTC/USDT, 4-hour chart, RSI, Source: TradingView
The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
Continued inflows from the United States spot Bitcoin exchange-traded funds (ETFs) could help BTC close the week above $71,300.
The U.S. Bitcoin ETFs saw collective inflows of $488.1 million on June 5. Moreover, Bitcoin ETFs recorded their second-best inflow day of $886.6 million on June 4. By Feb. 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.
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