Bitcoin price forecasted ‘highly bullish’ if this support level holds

According to Matrixport, Bitcoin is expected to maintain its bullish momentum if it successfully defends the key support level.

After breaking out of a shrinking wedge pattern, Bitcoin (BTC) now faces a crucial test at $89,260, a support level considered crucial for its continued bullish momentum. In an X post On January 21, Singapore-based blockchain firm Matrixport said that Bitcoin’s price outlook depends on staying above this threshold.

In a chart shared by the company, Bitcoin appears to be breaking out of a narrowing wedge pattern. The cryptocurrency, with a market capitalization of over 2 trillion, retested the breakout level at $98,042, which analysts consider a critical area for its price momentum.

“Bitcoin is retesting the breakout level,” independent analyst Markus Thielen wrote in the analysis, adding that if BTC remains above support, the near-term outlook will remain “very optimistic.” Since mid-November, Bitcoin has been moving in a wedge pattern. According to Matrixport, a combination of factors shaped its price, including inflation concerns and optimism about possible strategic market moves.

Although the report is optimistic, it adds a condition: Bitcoin must defend the support level in the coming days to maintain its bullish outlook. At press time, Bitcoin is trading at $103,497, while the total crypto market cap stands at $3.56 trillion.