Markus Thielen, head of research at 10x Research, predicts when Bitcoin will break out of its multi-week symmetrical triangle.
Bitcoin remains range-bound, consolidating within a symmetrical triangle on its daily chart. The structure started forming during the November bullish outburst, with the asset touching the tip with the surge to its current all-time high of $108,230.
With Bitcoin’s recent price action getting tighter due to the narrowing wedge, Thielen has suggested a breakout is on the horizon. In a recent analysis, he cited catalysts for the impending break of structure and gave a timeline for its realization.
Timeline for Breakout
Thielen noted that Bitcoin’s recent price action within the triangle suggests it will break out soon. However, he mentioned that it could push Bitcoin in either direction, suggesting that market users follow the trend and minimize risks.
Furthermore, the crypto analyst speculated that the largest cryptocurrency by market cap will breach the symmetrical structure no later than the January 29 FOMC meeting.
The Federal Reserve meeting is its first for the year. Meanwhile, the crypto market has lowered expectations of an interest rate slash later this month due to hawkish disclosures from chair Jerome Powell on a reduced rate cut in 2025.
Brightening Macroeconomics Could Catalyse Bitcoin Rally
Meanwhile, Thielen hinted at a bullish break and a subsequent Bitcoin rally. The market expert based his assertion on growing expectations of higher Consumer Price Index (CPI) figures.
He suggested a higher CPI data release today could force a milder inflation reading on January 29, spurring a Bitcoin rally. Meanwhile, he stressed that the Fed rate decision will be pivotal to the crypto market’s direction in the near term.
In the meantime, Thielen stated that Bitcoin will remain range-bound even as pro-crypto Donald Trump’s tenure begins. Notably, this market disposition contrasts with the outlook of crypto pundit Lark Davis.
Incoming Post Inauguration Pump?
In a tweet, Davis pointed to a correlation between Bitcoin’s recent price action and its price movements four years ago. He shared a chart showing that the premier asset has closely followed its price action during the post-elections and pre-inauguration phases.
For context, Bitcoin rallied from $13,594 on the November 3, 2021, election day to a high of $42,136. Furthermore, the asset corrected to $30,466 pre-inauguration before rallying to $65,000 after Joe Biden’s swearing-in.
Davies noted that while history may not repeat, it often rhymes. In the meantime, Bitcoin trades at $97,018, up 1.33% in the past seven days.
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