Matrixport predicts that Bitcoin will drop to the $36k level

Jan. 26, 2024
Matrixport predicts that Bitcoin will drop to the $36k level

Matrixport research predicted that Bitcoin would drop to the support level of $36,739 in a January 26 report. The report also stated that the price is expected to rebound from this support level, given the overall supportive liquidity and macro environment. Bitcoin actively seeks market momentum after securing Exchange Traded Fund (ETF) approval.

Matrixport’s Forecast for Bitcoin

Matrixport also said that BTC would come up from that level after the Bitcoin price dump due to overall positive liquidity and macroeconomic conditions. The report added that TradeFi’s interest in a Bitcoin spot ETF is lower than expected, and investors in GBTC are currently profit-taking.

Moreover, this is the first report that Matrixport published after they got a spot for Bitcoin ETF approval. Preceding the Bitcoin ETF approval, Matrixport made several predictions concerning Bitcoin prices and fixing an ETF. On January 3, 2024, Matrixport, a blockchain financial services group, reported that the Securities and Exchange Commission (SEC) will reject all 14 Bitcoin ETF applications and implied approval in H2 2024.

Additionally, financial services platforms projected the possible fall of the Bitcoin price from $45,000 to $36,000 to $38,000. They recommended, among others, buying put options or directly shorting Bitcoin for investors. However, the approval of Bitcoin ETF didn’t go as predicted, but now the price of Bitcoin is moving towards what Matrixport cited in its past report.

Bitcoin Price Momentum: Technical Analysis

Currently, Bitcoin is trading just above the $40,000 level, while over the last 24 hours, the cryptocurrency was relatively calm, with the downside momentum at a mere 0.04%, according to data from CoinMarketCap. Looking at Bitcoin on larger timeframes, the coin had more than 6% downside momentum in the last month.

Source: CoinMarketCap

Besides Matrixport’s Bitcoin price prediction, our experts’ technical analysis strongly says Bitcoin is bearish. Looking at Bitcoin in a 4-hour time frame, it continuously drops. This decline occurred after being rejected at $48,000, which followed the approval of a spot Bitcoin ETF. It has also formed a price action pattern of “Lower Highs and Lower Lows,” as seen on the chart.

This time, the new lower high for Bitcoin is $40,200. After this new lower high, it will be a lower low, possibly somewhere near the $38,000 level. Despite this action price phenomenon, the technical indicators in the 4-hour time frame give Bitcoin a negative sign. This confirms a bearish golden crossover as of today.

Related Reading | Bitcoin Forecast: Hayes Predicts Dip Below $35,000

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.