Bitcoin Breakout Imminent as Key January Dates Approach

NAIROBI (CoinChapter.com)— Bitcoin’s price is primed for a breakout before the Federal Open Market Committee (FOMC) meeting on Jan. 29, according to 10x Research head Markus Thielen. The cryptocurrency, trading near $96,000, remains in a narrowing wedge, signaling that a decisive move could be imminent.

Narrowing Triangle Indicates Imminent Breakout

Thielen pointed out that Bitcoin’s chart shows a narrowing triangle pattern, which often precedes a breakout. In his Jan. 14 report, he stated, “Bitcoin trades within a narrowing triangle, signaling a breakout is imminent — likely no later than the January 29 FOMC meeting.”

He emphasized that the direction of the breakout remains unclear, urging traders to prepare for movement in either direction. “From a trading perspective, the best approach is to follow the breakout, regardless of direction,” Thielen added.

Inflation Data Could Trigger a Bitcoin Rally

The potential breakout aligns with critical economic events, including the release of the Consumer Price Index (CPI) data. Expectations for higher inflation numbers have risen, and a softer-than-expected CPI reading could trigger a Bitcoin rally.

The Jan. FOMC meeting will also set the tone for the Federal Reserve’s monetary policy in 2025. December’s hawkish stance by Fed Chair Jerome Powell, which hinted at fewer rate cuts, has created caution among traders.

A recent report by Bitfinex noted that the Fed’s recent messaging has been one of its “most hawkish stances in months,” casting a shadow over Bitcoin’s short-term outlook.

Bitcoin Could Mirror Past Political Patterns

Thielen also highlighted Bitcoin’s potential reaction to political events, as Donald Trump’s inauguration on Jan. 20 could introduce additional volatility. Bitcoin has historically shown sensitivity to presidential transitions.

Crypto analyst Lark Davis noted similarities to Bitcoin’s price action during Joe Biden’s 2021 inauguration when the cryptocurrency dipped to $30,000 before rebounding to $55,000 shortly after the event.

While Davis acknowledged that history might not repeat itself, he remarked that “it often rhymes,” suggesting that Bitcoin’s response to Trump’s inauguration may follow a familiar pattern.

Bitcoin’s price near $96,000 is at a pivotal point. Markus Thielen advises traders to adopt cautious strategies, keeping positions smaller and leverage low to manage risk effectively.

With the Jan. 29 FOMC meeting nearing, a breakout seems unavoidable. Inflation data and Federal Reserve policies will likely dictate the direction of Bitcoin’s next move.

The post Bitcoin Breakout Imminent as Key January Dates Approach appeared first on Coinchapter.