Bitcoin could climb 15% from its current price within days but may then enter a phase of consolidation, says 10x Research head of research Markus Thielen.
Bitcoin (BTC) “successfully retested its wedge breakout” after it bounced from $98,937 up above $107,000 on Jan. 21, Thielen said in a same-day market report.
Bitcoin retested its “wedge breakout” after tapping $98,937. Source: 10x Research
Breakout signals ‘low-risk, high-reward entry,’ says Thielen
Thielen said Bitcoin’s price chart breakout signals a potential “low-risk, high-reward entry opportunity.” Bitcoin is trading at $105,727 at the time of publication, according to CoinMarketCap.
Bitcoin is trading at $105,730 at the time of publication. Source: CoinMarketCap
Bitfinex analysts shared a similar sentiment in a Jan. 21 markets report, saying that Bitcoin’s strong recovery continues to demonstrate its “impressive relative strength compared to the stock market.”
Thielen told Cointelegraph that after Bitcoin’s price “came back” following Donald Trump’s inauguration on Jan. 20, Bitcoin tested the “upper wedge” resistance level at around $101,000.
He said this presents a low-risk, high-reward opportunity since traders could have set stop-losses at $98,000, limiting potential losses while allowing for significant upside.
Thielen said Bitcoin has a pattern of jumping up in “$16,000 to $18,000 increments” since the approval of spot Bitcoin exchange-traded funds in the US a year ago, which signals that it may reach $122,000 by February, before “entering another consolidation phase.”
Rally may go higher than $122,000
Thielen added that a potential rally might not end there and “should the pattern hold, Bitcoin may not only reach $122,000 but could also trade significantly above this level before retesting it as support,” Thielen said.
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He added, however, that BTC breaking past $106,000 is “significant” to signal the “continuation of the established pattern.”
Keith Alan, co-founder of trading resource Material Indicators, also predicted that BTC would hit $122,000 due to a breakout from a so-called cup-and-handle pattern on the Bitcoin weekly chart.
“Bitcoin has reclaimed the key moving averages and is grinding back toward ATH Territory,” Alan said on Jan. 17.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
