While bitcoin is currently moving in the $45,000 zone, some influential players in the crypto market are particularly confident about developments in the coming weeks. This is particularly the case of Matrixport, a leading investment company, which has just published a note that is optimistic to say the least. Let’s examine in detail the elements that make Matrixport say that BTC crossing $50,000 is within reach.
An ideal technical setup for the bullish explosion of bitcoin
In its analysis published at the beginning of January, Matrixport highlights the price consolidation observed on bitcoin at the end of 2022, which would have prepared the ground for a strong bullish rally from the opening of 2024. The platform is banking in particular on the return of institutional investors, who stayed away last year. But, who are now eager to take advantage of the rise.
Several technical factors support this explosive scenario according to Matrixport. First, the imminent approval of a Bitcoin Spot ETF in the United States could serve as a trigger. This highly anticipated breakthrough for the institutional adoption of BTC could occur as early as this week according to some observers.
Secondly, Matrixport notes that 70% of bitcoin in circulation has remained unspent over the last twelve months. Indicating a scarcity of available supply, likely to cause prices to soar. Finally, the approach of the halving of April 2024. The latter halves the creation of new bitcoin and reinforces this shortage scenario.
A passage of $50,000 deemed achievable in the coming days
Given these ultra-favorable conditions, Matrixport considered the hypothesis of exceeding $50,000 for bitcoin in the coming days as entirely reasonable and even probable. The platform raises the possibility that this symbolic threshold will be crossed in the wake of the announcement of the American ETF, if it takes place this week.
In the longer term, Matrixport sees a target of $125,000 by the end of 2024. This is based on the historical performance of BTC during previous halvings (notably +192% on average). However, the $50,000 mark seems within reach in the very short term according to the investment company’s analysts.
With its recent note, Matrixport has revived the fantasy of a new imminent bullish explosion for bitcoin, potentially beyond the mythical threshold of $50,000. Needless to say, if this optimistic scenario were to materialize, it would be a great start for 2024, reassuring about the future of the queen of crypto. But in this Wild West that is the cryptocurrency market, it is important to remain cautious and prepare for all eventualities.
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