Matrixport forecasts a 7% decline in Bitcoin value in the near future.
Analysts at Matrixport have issued a warning that their trading signal for Bitcoin has turned bearish for the first time since August 2023. In a recent blog post, the Singapore-based crypto management firm cautioned traders that a decline in Bitcoin’s price could be expected within the next two weeks, as the breakout attempt may fall short.
Matrixport analysts believe that smart money may use the approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) on January 10 as an opportunity for profit taking. The crypto market has widely anticipated the approval of ETFs, and Matrixport suggests that this consensus could lead to a decrease in Bitcoin’s value.
Although leverage has recently been “flushed out of the market” and the downside is expected to be limited, Matrixport warns that the range of $36,000 to $38,000 could be retested. The funding rate for Bitcoin on crypto exchanges has also declined significantly, indicating that the largest cryptocurrency is technically vulnerable. The analysts argue that the sharp funding increase in early 2024 was unsustainable, making Bitcoin susceptible to a price drop.
This warning from Matrixport comes shortly after the firm expressed doubts in a previous blog report about the approval of Bitcoin spot ETFs by SEC Chair Gary Gensler. Following this statement, Bitcoin experienced a rapid 10% drop to $40,800, leading to accusations that Matrixport had initiated a sell-off. However, Matrixport co-founder Jihan Wu clarified that the company’s analysts do not influence their reporting, and the widespread reaction to the report was unexpected.
It is clear that the crypto market is highly sensitive to rumors and news, as demonstrated by the reaction to Matrixport’s warning. Traders and investors should remain cautious and closely monitor developments in the market.
