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.

AccessTimeIconMay 4, 2023 at 7:02 a.m. UTC
Updated May 4, 2023 at 3:34 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Edited by Parikshit Mishra.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Author placeholder image

Will Canny is CoinDesk's finance reporter.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about