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Crypto finance firm Matrixport, in its latest “Matrix on Target” report, predicted that Bitcoin may enter a correction process in the short term despite its recent upward trend.
Matrixport: Bitcoin May Enter Short-Term Correction Following Multiple Factors
The report states that despite positive macroeconomic developments in the US, technical indicators have weakened and the market may enter a consolidation phase in the next 1-2 months.
Matrixport reminded that Bitcoin has been in a gradual upward trend since $16,000 in the last 18 months, and stated that the $106,000–108,000 level currently constitutes support.
The firm argued that $122,000 is a reasonable next target, but the market may need a short-term correction before that level is reached.
Overbought Signals Becoming Clearer
Noting that Bitcoin has entered the overbought region from a technical perspective, the report emphasized that the RSI has risen above the 70 level and some pullback signals have formed.
In this context, it was stated that a pullback to the $106,000-$108,000 region could pave the way for the next upward wave.
US inflation in June, falling below expectations at 2.8%, has fueled market expectations for a near-term Fed rate cut. The report says these developments are providing support to the market, but cautions that “over-optimism” could pose a risk.
Matrixport also stated that strong signals for a rate cut could be given at the FOMC meeting on July 30, but September is a more likely timeframe.
While Matrixport predicts a short-term correction, it states that the long-term structure remains intact, but rather part of a healthy market cycle. The report also warns that technical formations such as “blow-off tops” or “double tops” may form following sudden market increases.
*This is not investment advice.