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Bitcoin (BTC), the world’s largest cryptocurrency, could face a significant price spike in the coming weeks, according to experts from Matrixport, the leading financial services provider for cryptocurrencies. The company predicted a $36,000 target for Bitcoin based on a technical breakthrough that signals a strong rally amid a positive market outlook fueled by share buybacks and meme coins.
Bitcoin is about to take off thanks to a strong tech breakthrough and a meme frenzy
Matrixport analysis shows that Bitcoin is currently trading inside a contracting triangle formation that is about to break higher. This could potentially lead to an increase of around 6,100 pips, bringing the price of bitcoin to a projected target of $36,000.
The BTC triangle points to $36,000. Source: Matrixport on Twitter.
The positive market outlook for Bitcoin is partly due to the popularity of meme coins, which have seen a surge of interest among retail investors. In addition, share buybacks by large corporations have given impetus to a broader market that has spilled over into the cryptocurrency space.
In addition, according to Matrixport, Bitcoin could rise significantly in price by up to 20% from current levels. This will set a $35,000 to $36,000 target for Bitcoin, driven by a potential market breakout.
Matrixport analysis shows that a Bitcoin breakout may be imminent, which could lead to a significant rise in the cryptocurrency. In addition, the recent 25 basis point interest rate hike by the Federal Reserve could be the last of this cycle, which could lead to another strong rally in the market.
Moreover, despite the recent decline in trading volume, Matrixport notes that Bitcoin’s rise is meeting only limited resistance as transactions on the network reach new all-time highs and the number of active addresses remains high.
Another interesting trend noted by Matrixport is the growing popularity of meme coins such as DinoLFG, Pepe, Wojak, ChadCoin and IgnoreFud. Although these meme coins may be small, it is worth noting their trading activity as it signals a shift in market sentiment towards a more positive outlook.
MVRV BTC Ratio Crosses Key Threshold, Signaling Bull Run Ahead
According to a recent analysis by CryptoQuant researcher, “Onchained”, in January 2023, the Market Value to Realized Value (MVRV) ratio of Bitcoin broke level 1 in an upward direction, indicating a significant increase in its price due to significant accumulation in both the spot market and and in the derivatives market.
The MVRV ratio showed that the 1.5 level is of great importance, acting as a crucial threshold for Bitcoin to start its bull run. Bitcoin’s MVRV is currently hovering between 1.55 and 1.45 this month, with large investors keeping a close eye on the indicator to capitalize on Bitcoin’s drop and accumulate depreciated BTC to fill their bags.
MRV BTC ratio. Source: CryptoQuant.
Also, according to Onchained analysis, the MVRV ratio undergoes a trend change when it breaks the 365-day simple moving average (365DSMA). If the ratio breaks this moving average in an uptrend, it signifies the start of a bull market when the MVRV ratio reverses direction and reaches high levels, typically 2 to 3.75 or higher.
Conversely, if the MVRV ratio breaks 365DSMA in a downtrend, it signals the start of a bear market and the ratio reverses direction, reaching low values of 1 or less. These patterns are visible on the chart.
The Onchained analysis showed that as the MVRV ratio crosses the 1.5 level, the 365DSMA flattens out before reversing upward. Currently, BTC seems to be experiencing this trend as its MVRV ratio fluctuates in the 1.5 range. If Bitcoin breaks the $30,000 level, its MVRV ratio is expected to change rapidly, likely to move into the 1.8 to 2 range.
BTC uptrend on 1-day chart. Source: BTCUSDT on TradingView.com.
Featured image from iStock, chart from TradingView.com