Matrixport says Bitcoin is expected to maintain its upward momentum if it successfully defends the key support level.
After breaking out of the tight wedge pattern, Bitcoin (BTC) now faces a pivotal test at $89,260, a support level seen as crucial for the continuation of its bullish momentum. in Share X On January 21, Matrixport, a Singapore-based blockchain company, said that Bitcoin price forecasts depend on staying above this limit.
In the chart shared by the company, Bitcoin was seen breaking out of a narrow wedge pattern. The cryptocurrency, which has a market capitalization of more than $2 trillion, retested the breakout level at $98,042, which analysts see as an important area for its price momentum.
“Bitcoin is now retesting the breakout level,” independent analyst Markus Thelen wrote in the analysis, adding that if Bitcoin remains above the support level, the short-term outlook remains “very bullish.” Since mid-November, Bitcoin has been moving within a wedge pattern. According to Matrixport, there is a mix of factors that shaped its price, including inflation concerns and optimism about potential strategic moves in the market.
While the report is optimistic, it adds a condition: Bitcoin must defend the support level in the coming days to maintain its bullish outlook. As of press time, Bitcoin is trading at $103,497, while the total cryptocurrency market cap is $3.56 trillion.
