Bitcoin has been trading in a narrowing wedge that is about to be broken to the upside, the report said, adding that technically this could project a move higher by an amount equal to when the wedge started to be formed, a range of about 20%.
Matrixport says that while the Federal Reserve raised interest rates another 25 basis points yesterday, there is a strong probability that this was the last hike for this cycle. This could set the market up for another strong rally.
Stock buybacks are now restarting following the end of the recent earning season and this will “continue to be a general tailwind for stocks and risk assets,” wrote Markus Thielen, head of research.
Bitcoin trading volumes may have declined recently, the note said, but the “path higher sees only limited resistance.”
“Transactions on the Bitcoin network have reached new all-time highs as the number of active addresses on the Bitcoin network has remained strong, near 1 million addresses,” the note added.