Matrixport Predicts Bitcoin Short-Term Growth with Key Support Holding Strong

2 mins mins

Key Points:

Bitcoin is currently retesting a critical price level, coinciding with the upper boundary of a narrowing wedge pattern.
Higher inflation, the Federal Reserve’s hawkish stance, and Trump’s “strategic Bitcoin reserve” expectations influence market sentiment.
If Bitcoin holds this crucial support level, it could see substantial short-term growth, fueling bullish market expectations.

According to Matrixport, Bitcoin short-term price movements have been trading within a gradually narrowing wedge range since mid-November of last year.

Bitcoin Short-Term Price Testing Key Support Level

Several factors have contributed to this price action, including higher-than-expected inflation data and the Federal Reserve‘s hawkish stance, which have suppressed overall market sentiment. Despite this, there has been a significant undercurrent of optimism in the market, driven by expectations surrounding former President Trump’s potential establishment of a “strategic Bitcoin reserve” to provide substantial support for the cryptocurrency.

Matrixport notes that Trump’s inauguration catalyzed Bitcoin’s recent upward movement, marking the point where Bitcoin short-term price began to break out of its previous range. Currently, Bitcoin’s price is retesting this breakout level, which coincides with the upper boundary of the narrowing wedge pattern. The level is critical because it represents a psychological and technical resistance point.

Bitcoin’s Significant Upside Potential if Support Holds

For Bitcoin to continue its upward momentum in the short-term, it must maintain this key support level. If Bitcoin can hold steady at this crucial juncture, Matrixport predicts significant upside potential in the coming weeks. A sustained move above this support level would reinforce the market’s bullish outlook and further fuel expectations of continued growth.

The combined influence of these key factors could provide Bitcoin short-term with the momentum it needs to break through this technical barrier and achieve new highs. With growing optimism surrounding Bitcoin’s role in future financial systems, all eyes are on the cryptocurrency’s ability to hold this crucial support level and deliver substantial returns for investors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.