Bitcoin May Rise to $80,000 on Triangle Breakout
The recent triangular consolidation at #Bitcoin ended with a bullish breakout, as the price chart shows.
Bitcoin $BTC , the leading cryptocurrency by market value, could soon hit new all-time highs after breaking through the so-called triangular resistance, according to a technical analysis by 10x Research.
Early Monday, BTC broke above $72,000, passing through a triangular consolidation pattern identified by a resistance line connecting the March 15 and March 27 highs and a support line connecting the March 20 and March 3 lows. April.
"If the breakout is bullish, as we suspect, Bitcoin could rise above 80,000 over the next few weeks, if not sooner. Buying at $69,280 and setting a stop loss at $65,000 seems appropriate," said Markus Thielen, founder of 10X Research.
The breakout comes on the heels of a better-than-expected nonfarm payrolls report that highlighted America's economic resilience, spurring risk-taking in all corners of the financial market.
Bitcoin has been experiencing what can be described as an “everything rally” this year. Not only has cryptocurrency soared to new highs, but so have traditional assets such as the Wall Street Tech Index, the Nasdaq, the S&P 500 and gold. The cryptocurrency's rally has been supported by a persistent expansion in the supply of major stablecoins.
In technical analysis, investors and analysts study price patterns to predict future trends of the asset. A symmetrical triangle, often called a coil, represents consolidation within a narrowing price range. The market typically builds energy during consolidation, which eventually breaks out in the direction in which the range resolves. Most of the time, symmetrical triangles end with a bullish breakout.
