Bitcoin (BTC) could experience a 15% price surge in the coming days, with analysts predicting that the cryptocurrency may then enter a phase of consolidation. According to Markus Thielen, Head of Research at 10x Research, Bitcoin has recently made a successful retest of its wedge breakout, bouncing from $98,937 to above $107,000 on January 21, signaling a potential “low-risk, high-reward” entry point for traders.
At the time of writing, Bitcoin is trading at $105,727, reflecting its impressive recovery. Thielen’s analysis suggests that the breakout presents an opportunity for traders to capitalize on Bitcoin’s upward momentum with limited risk, especially since traders could place stop-losses at $98,000 while positioning for significant gains.
This optimistic view aligns with a similar sentiment shared by Bitfinex analysts, who noted that Bitcoin’s strength has outpaced the stock market, showcasing its resilience. Thielen also highlighted that after the market’s reaction to Donald Trump’s inauguration on January 20, Bitcoin successfully tested the “upper wedge” resistance at around $101,000, further bolstering the case for a price surge.
Since the approval of Bitcoin exchange-traded funds (ETFs) in the U.S. last year, Bitcoin has been following a pattern of incremental jumps in the range of $16,000 to $18,000. Thielen suggests that Bitcoin may hit $122,000 by February before entering a consolidation phase, although he also notes that the rally could exceed this target if the current trend persists.
Keith Alan, co-founder of Material Indicators, also predicts a similar bullish trajectory, citing a breakout from a cup-and-handle pattern on the weekly chart. Alan believes Bitcoin could reach $122,000 and potentially push further toward its all-time highs.
Also Read: Bitcoin’s Price Outlook: Analysts Predict $145K to $1.7M Targets Riding on Historical Parallels
For now, Bitcoin’s path appears set for continued upward movement, but analysts advise watching for signals of consolidation once the $122,000 mark is reached.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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