Bitcoin price may be waiting for a big rally if the leading digital asset breaks a major resistance level. A popular chart pattern shows that BTC could rise 54% to $ 110,000 if it breaks above $ 69,829.

Bitcoin price awaits 54% increase

Bitcoin has formed an ascending triangle pattern on the weekly chart, suggesting the overall outlook is bullish. By observing this popular pattern, price has a 54% chance of rising to $ 110,714 if it breaks the upper bound and acts as a resistance at $ 69,829.

BTC’s first resistance level is at the 50% retracement at $ 48,777, which is in line with the 50-week simple moving average (SMA).

Bitcoin will explore another hurdle at the 21-week SMA (USD 52,784) and then at the 61.8% Fib retracement level (USD 53,478). The 78.6% Fib retracement at USD 60.167 will also serve as a hurdle for the top cryptocurrency as the bulls try to get near the top of the popular chart.

If price breaks the upper trendline of the triangle at $ 69.829, a target of + 54% to $ 110,714 isn’t too far-fetched. The world’s largest cryptocurrency will face resistance at the 127.2% Fib expansion at $ 79,512 and then the 161.8% Fib expansion at $ 93,300.

BTC / USDT weekly chart | Source: TradingView

However, if selling pressures mounts, Bitcoin will test the lower bound of the technical pattern that develops as support at $ 45.766. Other defenses will emerge at the 38.2% fib retracement level at $ 44,078 and then at the November 29th low of $ 42,150.

Investors should note that if price drops below the downtrend line of the pattern, the bullish outlook will be invalidated.

Bitcoin has grown 7-36% in the first week of January every year since 2018

Some analysts point to a positive potential for the first week of January, which the economist and trader Alex Krüger describes as the “first week effect”.

Follow tweet von Krüger on Wednesday, for the fourth year in a row, Bitcoin posted positive returns in the first week of January, fluctuating between 7% and 36% between 2018-2021.

In 2021, BTC rose from $ 28,653 to $ 41,441 in the first week of January.

When asked what had happened in the previous years, Krüger replied answer:

“The only thing that matters is that the 2020 and 2021 markets are different, so do whatever you want with those two data points.”

Great Britain is optimistic at the beginning of January and expects strong “capital inflows”. This appears to be in line with the views of Real Vision CEO Raoul Pal. Buddy said in a interview on YouTube on Monday that he believes the Bitcoin sell-off is over and January is off to a strong start as institutional capital is reinvested in the market.

In contrast, ExoAlpha Chief Investment Officer David Lifchitz insists that institutions keep selling with less than 24 hours from 2021 in order to limit tax losses. It is possible that the recovery movement in the first week of January is related to this phenomenon.

CEO Nigel Green of financial technology and asset management company deVere Group believes December will turn out to be the worst month for Bitcoin since May 2021, as “real panic sellers are giving away crypto”.

However, the CEO is optimistic about the largest long-term cryptocurrency by market capitalization. Green believes that Bitcoin can protect investors from global inflation and that “decentralized, global, borderless currencies are the future”.

However, not everyone is optimistic about cryptocurrencies in 2022.

Carol Alexander, professor of finance at the University of Sussex to speak CNBC told BTC could drop to $ 10,000 by 2022. However, she is skeptical as she believes that BTC has no fundamental value and has peaked this cycle.

Todd Lowenstein, Director of Equity Strategy at Union Bank, also provides more complete information. In his view, “favorable framework conditions” such as the fiscal stimulus package COVID and low interest rates in favor of asset prices are coming to an end. This will have a significant negative impact on BTC and traditional markets in 2022.

“The favorable conditions end and the wave of liquidity subsides. This will disproportionately harm overvalued asset classes and the speculative market sector including cryptocurrencies. ”

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