Bitcoin Could Rally 20% to Around $36K: Matrixport
The Fed’s latest interest rate hike may be the last for this cycle, which could set the market up for another strong rally, the report said.
May 4, 2023 at 7:02 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/TC7J6V3HOZF7VKT5VBPHFWDQNI.jpg)
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Bitcoin (BTC) could rally 20% to around $35,000 to $36,000, crypto-services provider Matrixport said in a research report on Thursday.
Bitcoin has been trading in a narrowing wedge that is about to be broken to the upside, the report said. It added that technically this could project a move higher by an amount equal to when the wedge started to be formed, a range of about 20%.
Matrixport says that while the Federal Reserve raised interest rates another 25 basis points Wednesday, there is a strong probability that this was the last hike for this cycle. This could set the market up for another strong rally.
Stock buybacks are now restarting following the end of the recent earning season, and this will “continue to be a general tailwind for stocks and risk assets,” wrote Markus Thielen, head of research.
Bitcoin trading volumes may have declined recently, the note said, but the “path higher sees only limited resistance.”
“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 note added.
Crypto sentiment has markedly improved, with meme coins being actively traded, the report added.
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Will Canny is CoinDesk's finance reporter.
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