The chief research analyst at 10x Research, Markus Thielen, thinks Bitcoin has a bright future. If Thielen’s crystal ball is correct, the digital asset might potentially experience significant price swings on January 29, 2025, once it breaks out of its so-called “symmetrical triangle” formation.
However, the path to this breakout is fraught with variables that could sway Bitcoin’s trajectory in any direction.
Breaking Down The Technicals
Bitcoin has been trading in a symmetrical triangular pattern for quite some time. These patterns typically signify consolidation, implying that the market is gearing up for a major move.
Thielen sees this as a possibility for a breakout, which might push Bitcoin over its resistance levels. However, he adds that there is no assurance. The breakout may happen either way.
Inflation And Fed Decisions Affect Bitcoin
A breakout may not be fully based on technical analysis. Thielen notes that inflation data and Federal Reserve interest rate decisions will have a significant impact on Bitcoin’s future price behavior.
If inflation remains high and the Fed continues to raise interest rates, the market’s risk appetite may decline, impeding Bitcoin’s growth. Alternatively, if economic conditions improve, Bitcoin may skyrocket.
Timeline For Breakout
Thielen speculates that Bitcoin will break out on January 29, 2025. If this schedule is accurate, we could witness a huge movement in the market. However, time, like all predictions, is subject to uncertainty.
Thielen, meanwhile, alluded to a bullish break and the ensuing Bitcoin surge. Growing anticipation of increased Consumer Price Index (CPI) numbers served as the foundation for the market expert’s claim.
The market may take longer to break through or face unexpected volatility, which alters the present trend. Investors should be cautious because the breakout could happen sooner or later than planned based on market conditions.
The Uncertainty Factor
While many analysts have a bright outlook, Thielen warns on prudence. Bitcoin’s price is famously volatile, with the possibility of huge volatility remaining. Investors should be aware that Bitcoin can encounter obstacles that restrict its breakout potential even with the positive technical patterns. Navigating this unpredictable terrain will depend much on risk management.
Bitcoin In The Green Today
Bitcoin was trading at $99,197, up 2.3% and 4.1% in the daily and weekly timeframes when this report was made.
Featured image from Techopedia, chart from TradingView
Source: NewsBTC