Bitcoin will fall to the $36k level, predicts Matrixport
The overall cryptocurrency market is struggling to gain momentum, especially Bitcoin, following the Exchange Traded Fund (ETF) approval. However, on January 26, 2024, Matrixport, an all-in-one crypto financial services platform, predicted that Bitcoin (BTC) would fall to its next support level, which is at $36,739.
Matrixport’s Bitcoin prediction
Additionally, Matrixport also stated that following the Bitcoin price dump, BTC would bounce back from that level due to overall positive liquidity and macroeconomic conditions. The report mentioned that TradeFi’s interest in a Bitcoin spot ETF is lower than anticipated, and investors in GBTC are currently cashing in their profits.
Moreover, this is the first report that Matrixport published following the approval of a spot Bitcoin ETF. Before the Bitcoin ETF approval, Matrixport predicted several things regarding the Bitcoin price and ETF approval. On January 3, 2024, Matrixport reported that the Securities and Exchange Commission (SEC) would reject all 14 Bitcoin ETF applications and also suggested that approval might come in the second quarter of 2024.
Along with this, financial services platforms also predicted a potential drop in the Bitcoin price from $45,000 to a range of $36,000 to $38,000. They also suggested investors consider buying put options or directly shorting Bitcoin. However, the Bitcoin ETF approval did not go as predicted, but the price of Bitcoin is now moving towards what Matrixport cited in its past report.
Technical analysis of Bitcoin and price momentum
Currently, Bitcoin is trading near the $40,000 level, and in the last 24 hours, it has remained stable, experiencing only 0.04% downside momentum according to the data on CoinMarketCap. If we look at Bitcoin over a longer period, in the last 30 days, it experienced over 6% downside momentum.
Besides Matrixport’s Bitcoin price prediction, as per our experts’ technical analysis, Bitcoin is strongly bearish. If we look at Bitcoin in a 4-hour time frame, it has continuously fallen after being rejected from the $48,000 level following 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, Bitcoin’s new lower high is at $40,200. Following this new lower high, the upcoming lower low, which we may witness, will likely be around the $38,000 level. Despite this price action phenomenon, the technical indicators on the 4-hour time frame also give a negative sign for Bitcoin, confirming a bearish golden crossover as of today.