In a study report, the crypto-services company Matrixport predicted that Bitcoin (BTC) might increase by up to 20% and reach between $35,000 and $36,000. According to the study, Bitcoin has been trading in a wedge that is ready to break to the upside. Technically, this can cause a move higher that is around 20% higher than the wedge’s formation range.
According to the study, even though the Federal Reserve increased interest rates by another 25 basis points on May 4, there is a good chance that this was the last increase for this cycle, which may pave the way for another significant upturn in the market. Additionally, following the conclusion of the most recent earnings season, stock buybacks have begun again, and this will “continue to be a general tailwind for stocks and risk assets,” according to Markus Thielen, Head of Research at Matrixport.
The research claims that although recent Bitcoin trade volumes may have decreased, there is still “limited resistance on the path higher.” According to the research, “transactions on the Bitcoin network have reached new all-time highs as the number of active addresses on the Bitcoin network has remained strong, near 1 million addresses.”
The survey also said that recent improvements in the cryptocurrency market have resulted in significant trading of meme currencies. The paper, however, did not provide any more examination of this tendency.
Overall, the study report from Matrixport offers a bright picture for Bitcoin in the near future, with the possibility of a substantial increase in the next weeks. Investors should use care while trading cryptocurrencies since the market is still uncertain and volatile.
