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

Bitcoin is expected to retain its upward momentum if it successfully defends the key support level, Matrixport says.

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

In a chart shared by the firm, Bitcoin is seen breaking out of a narrowing wedge pattern. The cryptocurrency, with a market capitalization of more than 2 trillion, has been retesting the breakout level at $98,042, which analysts see as a critical area for its price momentum.

“Bitcoin is now retesting the breakout level,” independent analyst Markus Thielen wrote in the analysis, adding that if BTC stays above the support, the short-term outlook will remain “highly bullish.” Since mid-November, Bitcoin has been moving within a wedge pattern. According to Matrixport, a mix of factors has shaped its price, including inflation concerns and optimism around potential strategic moves in the market.

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