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Why can the price of Bitcoin reach $83,000 in a week?
Bitcoin bulls led the price to rise above the $71,500 level after sentiment improved amid the cooldown inflation and bullish technical chart patterns. Bitcoin price surpasses $72,000, with $1.5 billion in shorts facing liquidation on a move to a new all-time high of $75,000.
Traders say Bitcoin is at a major inflection point, as indicated by a decline in pre-expiration trading volumes of $2.2 billion in Bitcoin and Ethereum options and today’s non-farm payrolls data in the United States. United States and the unemployment rate.
$2.2 Billion Bitcoin and Ethereum Options Expire
Cryptocurrency market remains calm amid $2.2 billion Bitcoin and Ethereum options expiration, experts point to a possible sell-off or bright outlook for weeks.
Above 17,493 BTC options The notional value of $1.24 billion will expire, with a put-call ratio of 0.69. The critical high point is $70,000, indicating that Bitcoin traders have room to liquidate positions as selling pressure remains. Implied Volatility (IV) witnesses a decline in all major terms by up to 50%, meaning that volatility would drag the price lower.
In the meantime, 260,000 ETH options with a notional value of nearly $1 billion will expire, with a put-call ratio of 0.65. The high critical point is $3,650, which is also lower than the current price of $3,813. This indicates that traders still have room to liquidate and lower the price. Keeping an eye on trading volumes is necessary for further indications of ETH price directions.
Read also: Whales Shuffle 318M XRP as price holds $0.52 support
Non-agricultural occupations and unemployment rate
The U.S. Bureau of Labor Statistics will release nonfarm payrolls and unemployment data today. The U.S. economy is projected to add 185,000 jobs in May 2024, slightly higher than April’s 175,000.
The unemployment rate is expected to remain stable at 3.9%, holding at a two-year high. Additionally, wages likely increased 0.3% month over month, a slight increase from the 0.2% seen in April, but the annual increase remained unchanged at 3.9%.
May data relating to jobs they should manifest themselves forcefully, despite the cooling of the labor market. An increase in the unemployment rate above 3.9% will bring a positive movement to the market.
Bitcoin price will reach $83,000
BTC price has moved sideways for the past 2 days near $71,000 as traders awaited key economic data. The price is currently trading at $71,047, with a 24-hour low and high of $70,119 and $71,625, respectively. Furthermore, trading volume continues to remain low, indicating a decline in interest among traders.
According to 10x Research, the head and shoulders pattern formation indicates that Bitcoin will soon rise to $83,000 and the resistance line may be broken in the next few days. “The ideal time for this resistance to break is today, Friday 7 June, or next week, Wednesday 12 June.”
Meanwhile, open interest in Bitcoin futures began to decline before the close of trading on the CME Bitcoin futures market today. Total OI of BTC futures rises to $38.04 billion.
Source: Coinglass
Read also: Bitcoin whales buy $1 billion worth of BTC on a daily basis, $80,000 on the way