Bitcoin is showing signs of strength, with predictions suggesting that it could reach $122,000 by February, according to Markus Thielen, head of research at 10x Research. Thielen notes that Bitcoin has been following an $18,000 incremental movement pattern, and given the recent market trends, he believes that BTC could soon surge 15% from its current price. As of January 21, Bitcoin’s price is hovering around $105,727. Thielen highlights that the cryptocurrency successfully retested its breakout level after bouncing from $98,937 up to above $107,000.

Thielen’s report points to a "low-risk, high-reward entry" for traders, indicating that the recent breakout signals a potential opportunity to buy at favorable levels. He explains that Bitcoin’s price could continue to climb in $16,000 to $18,000 blocks, a trend that has been in place since the approval of spot Bitcoin exchange-traded funds in the United States one year ago. This consistent movement could push the price to $122,000 in the coming weeks before entering a phase of consolidation, as Thielen predicts.

In his analysis, Thielen notes that after Bitcoin’s price "came back" following the inauguration of Donald Trump on January 20, the cryptocurrency tested the upper wedge resistance level at around $101,000. This level, Thielen asserts, provides a low-risk, high-reward opportunity for traders. He suggests that placing stop-losses at around $98,000 could limit potential losses while still allowing traders to benefit from significant upside potential. Bitcoin’s impressive recovery, demonstrated in part by its recent movement above $107,000, has made analysts increasingly optimistic about its future performance.

However, Thielen’s forecast isn’t limited to Bitcoin reaching $122,000. He also mentioned that, should the price pattern continue as expected, Bitcoin could surpass this figure and even trade above $122,000 before eventually retesting it as support. The likelihood of Bitcoin’s price breaking past $106,000 is seen as a key indicator for the continuation of the pattern.

Keith Alan, the co-founder of Material Indicators, shares a similar outlook. Alan points out that Bitcoin’s current breakout from a cup-and-handle pattern on its weekly chart is another indicator that BTC could hit $122,000 soon. Alan further emphasizes that Bitcoin’s ability to reclaim key moving averages and its recent rally towards all-time highs demonstrates strong relative strength, especially in comparison to broader market movements. As of January 17, Alan also pointed to the potential for Bitcoin to move back into its "ATH Territory," meaning it could approach its previous all-time highs.

While both Thielen and Alan agree that a rally to $122,000 is highly probable, they also caution that Bitcoin’s price may not sustain such a high indefinitely. After reaching these levels, Bitcoin could enter a consolidation phase, where the price stabilizes before making further significant moves. This consolidation period is typical for Bitcoin and could allow for a rebalancing of market positions before the next phase of growth.

The future of Bitcoin remains a topic of intense speculation, but current trends suggest that its price could soon reach levels previously thought unattainable. As always, investors should be cautious, keeping in mind the potential for both substantial gains and temporary pullbacks.