Bitcoin (BTC) could surge 20% to around $35,000-$36,000, crypto services provider Matrixport said in a research report Thursday.
Bitcoin is trading in a narrow wedge that is about to collapse to the upside, the report said, adding that technically this could lead to an upside by an amount equal to when the wedge starts forming, a range of about 20%.
Matrixport says that while the Fed raised interest rates by another 25 basis points yesterday, there is a strong possibility that this will be the last hike of this cycle. This could set the market up for another strong rally.
Share buybacks are now resuming after the end of the last earnings season, and this will continue to be a “general tailwind for equities and risky assets,” Marcus Thieln, head of research, writes.
Bitcoin volumes may have fallen recently, the note said, but “the uptrend sees only limited resistance.”
The note added, “Transactions on the Bitcoin network have reached an all-time high as the number of active addresses on the Bitcoin network remains strong, close to 1 million.”
The report added that crypto sentiment has improved significantly with meme coins actively trading.
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