Bitcoin is showing signs of an upcoming price breakout ahead of the United States Federal Reserve's January 29 meeting, according to Markus Thielen, head of research at 10x Research.
The Growing Uncertainty Around Bitcoin
Thielen noted that Bitcoin trades within a narrowing triangle pattern, signaling that a breakout is looming. He suggests this breakout could occur no later than the FOMC meeting in January.
Market and Inflation Expectations
Markus Thielen points to rising expectations for the Consumer Price Index, which could trigger a Bitcoin rally if inflation comes in cooler than expected. Notably, the upcoming meeting marks the first interest rate decision of 2025.
Upcoming Political Events and Bitcoin
Thielen cautions that Bitcoin may begin to consolidate with Donald Trump's inauguration approaching: 'Due to weak market drivers, Bitcoin will likely remain range-bound until mid-March,' he stated. Analyst Lark Davis also noted that Bitcoin's current price moves echo those seen before the last US presidential election.
With anticipated economic and political events, Bitcoin market observers are keenly watching for a potential breakout. While history may not repeat exactly, it can have similar patterns.
