Bitcoin price is predicted to be “highly bullish” if it maintains this key support level

Bitcoin is forecasted to have a “highly bullish” outlook if it successfully defends a key support level, according to Matrixport, a Singapore-based blockchain firm.

Bitcoin recently broke out of a narrowing wedge pattern and now faces a pivotal test at $89,260, which is considered a crucial support level for its continued upward momentum. In a post on X (formerly Twitter) on January 21, Matrixport emphasized that Bitcoin’s price forecast will depend on staying above this threshold.

In a chart shared by the firm, Bitcoin can be seen breaking out of a wedge pattern. The cryptocurrency, with a market capitalization exceeding $2 trillion, has been retesting the breakout level at $98,042, which analysts regard as an essential area for its price action.

Independent analyst Markus Thielen noted that if Bitcoin stays above the support level, the short-term outlook will remain “highly bullish.” Since mid-November, Bitcoin has been moving within a wedge pattern. According to Matrixport, a combination of factors such as inflation concerns and optimism around potential market moves has been influencing its price.

However, the report adds an important condition: Bitcoin must defend this support level in the coming days to maintain its bullish outlook. As of press time, Bitcoin is trading at $103,497, with the total cryptocurrency market cap standing at $3.56 trillion.

This forecast suggests that if Bitcoin can hold above the key support level of $89,260, it may continue its bullish trajectory in the short term. Factors like inflation concerns and strategic market movements are expected to play a role in the price direction for Bitcoin moving forward.