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Bitcoin’s triangular consolidation has ended with a bullish breakout, opening the door to $80,000, according to analysis by 10x Research.
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The latest breakout comes on the back of a blowout U.S. jobs report.
Bitcoin {{BTC}}, the leading cryptocurrency by market value, could soon rally to new record highs after breaking through a so-called triangle resistance, according to technical analysis by 10x Research.
Early Monday, BTC rose past $72,000, passing through a triangular consolidation pattern identified by a resistance line connecting March 15 and March 27 highs and a support line connecting March 20 and April 3 lows.
“If the breakout is bullish, which we suspect, bitcoin could climb above 80,000 during the next few weeks – if not earlier. Buying at $69,280 and setting a stop loss at $65,000 appears appropriate,” Markus Thielen, founder of 10X Research, said in a note sent to clients early Monday.
The upside target of $80,000 equates to at least a 10% rise from the current price of $72,300.
The breakout comes on the heels of a hotter-than-expected nonfarm payrolls report that highlighted the U.S. economic resilience, spurring risk-taking across all corners of the financial market.
Bitcoin has been riding what can be described as an “everything rally” this year. Not only has the cryptocurrency soared to new highs, but so have traditional assets like Wall Street’s tech-heavy index, Nasdaq, the broader S&P 500 and gold. The cryptocurrency’s rally has been supported by persistent expansion in the supply of major stablecoins.
In technical analysis, investors and analysts study price patterns to predict future trends in the asset. A symmetrical triangle, often called a coil, represents consolidation within a narrowing price range. The market typically builds energy during the consolidation, which is eventually unleashed in the direction in which the range is resolved. More often than not, symmetrical triangles end with a bullish breakout.