The largest cryptocurrency by market value, Bitcoin (BTC), could soon reach new records after breaking through a so-called triangular resistance, according to technical analysis carried out by 10x Research.
On Monday morning, BTC surpassed $72,000. This movement caused BTC to cross a triangular consolidation pattern identified by a resistance line connecting the March 15th and March 27th peaks and a support line connecting the March 20th and April 3rd troughs.
“If the breakout is bullish, as we suspect, Bitcoin could rise above $80,000 during 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, in a note sent to clients Monday morning.
The $80,000 upside target equates to at least a 10% upside from the current price of $72,300.
Bitcoin Price Analysis
Bitcoin has been on what can be described as an “everything rally” this year, according to analysts. That’s because the cryptocurrency has not only soared to new highs but also outperformed traditional assets like Wall Street’s tech index, the Nasdaq, the broader S&P 500 and gold.
The appreciation of the cryptocurrency is set against the backdrop of the approval of spot Bitcoin ETFs in the United States and also the arrival of the halving in April, an event that tends to boost Bitcoin prices.
In technical analysis, investors and analysts study price patterns to predict future trends in the asset. A symmetrical triangle represents a consolidation within an increasingly narrow price range.
The market usually accumulates energy during the consolidation period. Then, this “energy” is “released” later. In general, symmetric triangles end with a bullish breakout and that is exactly what analysts expect for Bitcoin.
Price to keep mining profitable
As mentioned, the Bitcoin halving is coming. This event, which occurs every 210,000 blocks or approximately every four years, will reduce cryptocurrency mining rewards by half. This means that for mining to remain profitable, the price of Bitcoin needs to be above a certain level.
According to data from CryptoQuant CEO Ki Young Ju, the current cost of mining using an Antminer S19 XPs rig will increase from $40,000 to $80,000 after the Bitcoin halving. Thus, for miners to continue operating profitably, the price of BTC must trade above this price
Source: https://www.criptofacil.com/bitcoin-pode-subir-para-us-80-mil-nas-proximas-semanas-diz-analise/
