Bitcoin Price Forecast: BTC Hints at Breakout to $110k

Highlights:

• Bitcoin is in a possible bullish breakout pattern
• Breakout could be triggered by news of incoming favorable regulations
• Rally off current prices could trigger a rally to $110k or higher

Bitcoin (BTC) is range bound in the day as investors continue to absorb the post-Trump inauguration cryptocurrency price action. At the time of going to press, Bitcoin was trading at $104,943, up by 1.33% in the day. However, trading volumes are down by 33% in the day to stand at $70.52 billion in the day.

This points to the fact that investors are sitting on the sidelines, waiting for the volatility triggered by Trump coins to settle. Despite range-bound trading, analysts remain optimistic that Bitcoin could break out bullishly.

Analysts Increasingly Bullish on Bitcoin

Markus Theilan, head of research at 10x Research, claims that Bitcoin’s (BTC) surge is set to increase next month, pushing the cryptocurrency’s value to $122,000. As stated in a report in Early December, the cryptocurrency has made a retest on its wedge breakout and continues to display significant increments in price.

As for now, bitcoin is trading strongly at $105,727, demonstrating an impressive relative strength in comparison to the stock market as it rebounded from $98,970. According to Analyst’s from BITFINEX, “Bitcoin demonstrated an impressive strength which allows for a change in investment strategy” based on “low risk, high reward” opportunities. Theillian emphasized that a stop loss at $98,000 allows room for gains while protecting against potential losses.

Consensus Puts Bitcoin Above $120k

Although consolidation phases may follow, other analysts such as Keith Alan, co-founder of material indicators, shared Thillian’s hypothesis. The weekly chart reveals patterns like the “cup and handle,” projecting Bitcoin’s value at $122,000. Alan argues that Bitcoin’s reclaim of key moving averages is an evident indicator that all-time high values are a realistic expectation.

SEC Expected to Effect Pro-Bitcoin Regulations

On Tuesday, Bitcoin rose by 3.8 percent, reaching closer to the record high of $109,071, after the SEC announced plans for a framework to regulate digital assets. Bitcoin rises sharply after Monday’s drop, driven by initial disappointment over absent crypto initiatives in Day One executive orders. After this announcement, it is evident why the Trump administration is taking its first major step toward cryptocurrency policy. These moves by the Trump administration have further increased the price of Bitcoin.

JUST IN: 🇺🇸 SEC launches new task force to create a "clear regulatory framework for crypto assets." pic.twitter.com/3W2VPWzQ3L

— Bitcoin Magazine (@BitcoinMagazine) January 21, 2025

In the same announcement, the SEC revealed the formation of a task force intended to write regulation draft proposals. Acting Chair Mark Uyeda said the agency aims to add structure to the current regulatory gap in the space. As put forth by Coinbase chief legal officer Paul Grewal, “The SEC still has a lot of ground to cover, but they’re keen on flexibility as the industry continues to evolve, and a more open approach toward problem-solving is greatly needed.” 

Some Analysts Urge Caution

The announcement has lifted the market, but investors must prepare for potential volatility until new policies take effect. Geoffrey Kendrick, Global head of digital assets research at Standard Chartered stated:

“The market on digital assets was shocked to realize crypto was not in the first actions that emerged from the presidential office.”

The statement stays valid unless evidence suggests the price might drop below $100,000.

Technical Analysis – Bitcoin Price Forms a Perfect Breakout Chart Pattern

The charts indicate Bitcoin is heading for a bullish breakout. Bitcoin has formed a symmetrical triangle pattern.

This indicates that a slight increase in buying volumes could trigger a rally to prices above $110k in the short term.