Bitcoin Consolidation Continues as Matrixport Predicts $63,000 Target
The cryptocurrency market has been hovering near the $2 trillion threshold for the past two weeks, leading to a sideways sentiment among traders. Bitcoin, in particular, has been consolidating between the $52,885 and $50,680 levels, creating a range pattern. Traders are currently debating whether this consolidation is a distribution phase or a pre-rally consolidation.
However, Matrixport, a crypto financial services platform, released a report stating that Bitcoin could reach $63,000 by March 2024. The report highlights several catalysts that could drive this bullish outlook, including the potential approval of a Bitcoin spot ETF, the Bitcoin halving event, anticipated interest rate cuts by the Federal Reserve after its FOMC meeting, and the upcoming U.S. presidential election.
Bitcoin Price Analysis: Retesting $50,000 Support
Bitcoin is currently trading at $51,228 and has been oscillating between the $52,885 and $50,680 levels. The price has rebounded from both levels twice but remains indecisive. A breakout beyond this range will provide clues about Bitcoin’s short-term trajectory.
A bullish breakout above the $52,885 resistance level would signal a continuation of the recovery to $59,810. However, data from IntoTheBlock reveals that many investors who bought Bitcoin at an average price of $2,984 are currently facing losses. These investors may trigger selling pressure once their positions reach breakeven.
Chainlink Price Analysis: Downtrend Indicates Potential Buying Opportunity
Chainlink has experienced a significant downtrend in recent days, falling 11.6% within a week to trade at $17.9. However, the falling price accompanied by decreasing volume suggests weakening selling pressure and a possible temporary pullback. The current support level at $17 may act as a buying opportunity.
An analysis of the higher time frame chart reveals a minor retest of the cup and handle pattern’s neckline. If Chainlink sustains above this support level, buyers may target $29.85.
Shiba Inu Price Analysis: Rebound Expected from Support Trendline
Shiba Inu has seen a 4% decline in price, reaching $0.00000954 after a recent downswing from $0.00001. If selling pressure persists, the price may drop another 3% to hit combined support at $0.00000922 and the support trendline.
The ascending trendline, active for the past four months, has provided buyers with dynamic support during market corrections. A potential rebound from this trendline could offer an opportunity for buyers to regain strength. Additionally, Shibarium, a layer 2 solution for Shiba Inu, has experienced a surge in daily transactions, reflecting increasing adoption and utilization of the network.
Hot Take: Crypto Market Consolidation Presents Buying Opportunities
The current consolidation phase in the cryptocurrency market offers opportunities for traders and investors. While Bitcoin remains indecisive within its range, Matrixport predicts a potential target of $63,000 by March 2024. Chainlink’s downtrend indicates a possible buying opportunity at the $17 support level. Shiba Inu’s rebound from its support trendline could lead to a price surge. As always, it’s essential to stay informed about market trends and catalysts that can impact prices.
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