Matrixport, a cryptocurrency services provider, released a research report on Thursday suggesting that Bitcoin (CRYPTO: BTC) has the potential to surge by 20%, reaching a value between $35,000 and $36,000.
The report highlights that Bitcoin has been constrained within a tightening wedge, which is expected to break upward soon, equivalent to the initial formation of the wedge, according to a Coindesk report.
The research also mentions that despite the Federal Reserve's recent decision to raise interest rates by 25 basis points, there is a high likelihood that this marks the end of the current rate hike cycle.
This development could pave the way for a robust market rally.
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Markus Thielen, Head of Research, observed that stock buybacks are resuming following the conclusion of the recent earnings season, which will "continue to be a general tailwind for stocks and risk assets."
While Bitcoin trading volumes may have recently experienced a decline, the report emphasizes that the "path higher sees only limited resistance."
Furthermore, the research highlights that transaction activity on the Bitcoin network has reached new all-time highs, with the number of active addresses remaining strong at nearly 1 million.
The study also notes that overall cryptocurrency sentiment has improved, with meme coins experiencing active trading.
Image by Mohamed Hassan from Pixabay
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