Investing.com-- Bitcoin price edged higher on Friday, steadying close to record highs amid support from a weaker dollar and growing bets on U.S. interest rate cuts ahead of key nonfarm payrolls data.
Bitcoin rose 1% in the past 24 hours to $71,878.6 by 08:22 ET (12:22 GMT). The token was set to add over 5% this week after it broke out of a $60,000 to $70,000 trading range established since mid-March.
Rate cut bets mount ahead of nonfarm payrolls data
Bitcoin and broader crypto prices were boosted by growing expectations that the Fed will begin cutting interest rates by September.
A slew of weak U.S. economic readings supported this notion, as traders bet that a cooling U.S. economy will give the Fed more confidence to loosen monetary policy. The dollar tumbled this week, also benefiting risk-driven assets.
The readings came ahead of key nonfarm payrolls data, which is due later on Friday and is expected to offer more definitive cues on the labor market and interest rates.
Looser monetary conditions bode well for risk-heavy, speculative assets such as cryptocurrencies, given that they free up more capital that can be then directed towards speculative plays into crypto.
Bitcoin was trading less than $3,000 below a record high, as expectations of lower rates spurred a heavy dose of institutional capital flows into exchange-traded funds linked to the cryptocurrency.
Hype over the approval of spot Bitcoin ETFs for U.S. markets was a key factor behind the cryptocurrency’s run to record highs earlier this year.
Analysts said that the prospect of lower rates could spark another record high rally for the token in the near-term.
Bitcoin could hit $83k soon, technical analysts say
Bitcoin could be on the verge of climbing to $83,000 as it completes a significant bullish pattern on the daily chart, according to technical analysis at 10x Research.
A move above $72,000 would confirm a breakout from an inverted head-and-shoulders pattern, which features three price troughs, with the middle one being the deepest.
"It is only a matter of time until bitcoin makes a new all-time high,” said 10x Research analysts in a note seen by Coindesk.
“The head-and-shoulders formation suggests a rally towards 83,000 soon, with the resistance line likely broken within the next few days. The ideal time for this resistance to break is either today, Friday, June 7, or next week, Wednesday, June 12,” they added.
According to technical analysis principles, the inverted head-and-shoulders pattern typically appears after a downtrend and signals an upward trend reversal following a breakout. This pattern is uncommon in an already upward-trending market, signaling a bullish continuation.
The breakout above $72,000 in part depends on the non-farm payrolls report.
Crypto price today: altcoins tread water, set for middling weekly performance
Among broader crypto markets, major altcoins also kept to a tight trading range on Friday, in anticipation of more cues on U.S. rates.
But most tokens were set for some weekly gains, amid expectations of lower rates and as optimism over a spot Ether ETF persisted.
World no.2 token Ether fell 0.35% to $3,831.72 and was trading nearly flat for the week.
Altcoins XRP, SOL and ADA saw minor gains, while ADA added 5.5% on Friday.