Matrixport Analysts Expect Bitcoin Price to Rally Another 65% to $56K by EOY

Having maintained a bullish outlook YTD, Bitcoin price is very likely to continue in the same momentum in the next eight weeks based on historical trends studied by Matrixport.

Bitcoin (BTC) price has already made several surprising moves in the past year, and market experts at Matrixport led by Markus Thielen, the company’s head of research and strategy, think another bullish breakout towards $56K is plausible by December 31. The analysts at Matrixport based their forecast on historical performance whereby Bitcoin price tends to follow the bullish momentum obtained during the first ten months in the last few weeks of the year by more than 78 percent. As a result, the analysts at Matrixport concluded that there is a 71 percent chance that Bitcoin price could continue with the recent breakout rally to a new yearly high in the next few weeks.

However, the Bitcoin bullish call does not rule out a possible correction toward the support/resistance zone between $31K and $32K before an imminent rebound. Moreover, Bitcoin continues to record notable demand from institutional investors seeking to flee to quality investment products amid high inflation.

“If Bitcoin is up at least over 100 percent by this time of the year, then there is a more than 71 percent chance or five in seven that Bitcoin would finish the year higher with average year-end rallies of over 65 percent. As bitcoin tends to reach its peak by December 18th, we could call the six to seven weeks from early November to mid-December Bitcoin’s Santa Claus Rally,” Thielen told clients in a note on Thursday.

Bitcoin Price Action and Market Picture

Bitcoin price exchanged around $34.4K on Friday, November 2, down 2.4 percent in the past 24 hours. The recent breakout towards $36K fueled by the FOMC statement earlier this week had cooled off on Friday, with some technical analysts calling for a possible correction towards $31K. Moreover, the daily time frame shows a possible bearish divergence on a rising trend.

Nonetheless, the Bitcoin market is largely supported by the high mainstream adoption, and the diverse global regulatory landscape. Moreover, Bitcoin’s liquidity has continued to improve as more gold proponents shift focus on the digital currency with a higher return to risk ratio.

Meanwhile, the Bitcoin market is preparing to close one of its biggest fraud cases in the United States that was orchestrated by former FTX boss, Sam Bankman-Fried (SBF), who was found guilty by the jury on all seven charges. The end of the FTX case signals a new era in the Bitcoin market as investors await the fourth halving and imminent spot ETF approval in the United States.

Altcoin Glimpse

With the Bitcoin market heading to a new year’s high, there is a high chance that cash rotation in the crypto market will lift the entire altcoin market in the coming few weeks. Moreover, several altcoins led by Solana (SOL) have recorded notable cash inflows according to weekly research conducted by CoinShares.

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Source: https://www.coinspeaker.com/matrixport-bitcoin-price-56k/