10x Research sees scope for a bitcoin breakout by end-January

Bitcoin’s chart points to an imminent breakout ahead of the FOMC meeting scheduled for late January, according to analysts at 10x Research.

In their view, the price of bitcoin continues to form a symmetrical triangle, signalling an approaching move. The direction, however, remains unclear.

Analysts reckon traders are expecting an increase in the CPI. If the inflation figure published on 15 January comes in below expectations, a rally in bitcoin could begin.

QCP Capital believes that the Federal Reserve’s continued tight monetary policy and the prospect of a rate hike are signs of “positive surprises” ahead.

The 29 January FOMC meeting is a “critical marker”, say 10x Research, after which a breakout may occur. Until then, market participants will remain cautious.

Until mid-March, bitcoin’s price is likely to remain range-bound due to “weak market factors”.

“From a trading perspective, the best approach is to follow the breakout, regardless of direction,” said Markus Thielen, head of research at 10x Research.

The team stressed that market conditions are not as favourable as in late September 2024. They advised traders to keep smaller positions and use limited leverage during this “period of uncertainty”.

According to technical analyst Peter Brandt, if bears prevail, bitcoin’s price could drop to $74,100, but with support from bulls there is potential to reach the ATH around $116,600.

In January, Fundstrat founder Tom Lee called $90,000 “a good entry point” for bitcoin.