Bitcoin’s recent period of triangular consolidation has concluded with a bullish breakout, as indicated by the price chart.
The latest analysis from 10x Research suggests that Bitcoin (BTC), the predominant cryptocurrency in terms of market value, could be on the verge of a significant rally, potentially propelling it towards $80,000. This optimistic outlook follows the breach of a triangular resistance pattern identified within Bitcoin’s recent price movements.
On Monday, BTC surged beyond $72,000, effectively surpassing a triangular consolidation pattern marked by a resistance line connecting the highs of March 15 and March 27, and a support line linking the lows of March 20 and April 3. Markus Thielen, the founder of 10X Research, conveyed in a note to clients that if the breakout remains bullish, a further ascent to $80,000 could be expected within the upcoming weeks, if not sooner. Thielen recommended initiating buying positions at $69,280, with a suggested stop loss set at $65,000.
The anticipated target of $80,000 represents a potential increase of at least 10% from the current price level of $72,300. This breakout coincides with a stronger-than-anticipated nonfarm payrolls report, emphasizing the resilience of the U.S. economy and fostering a risk-on sentiment across various sectors of the financial market.
Bitcoin’s remarkable ascent this year has been part of a broader trend known as the “everything rally,” characterized by notable surges in traditional assets such as Nasdaq, the S&P 500, and gold. This surge in Bitcoin’s price has been bolstered by the continuous expansion of major stablecoins’ supply.
In technical analysis, investors and analysts scrutinize price patterns to forecast future asset trends. A symmetrical triangle, often referred to as a coil, represents a phase of consolidation within a narrowing price range. Typically, during this consolidation phase, the market accumulates energy that is eventually released upon the breakout of the pattern. Symmetrical triangles, more often than not, culminate in a bullish breakout.
