Possible Breakout for Bitcoin Based on Current Support Level

Matrixport's recent bitcoin report highlighted the possibility of a bitcoin price breakout after retesting a critical support level.

Bitcoin’s price action is currently retesting a key support level with several macro-factors in play that could contribute to another strong bullish rally.

Possible Breakout for Bitcoin Based on Current Support Level

Matrixport’s recent bitcoin report highlighted the possibility of a bitcoin price breakout after retesting a critical support level.

The report noted that the price of bitcoin has been in a gradually narrowing wedge pattern since mid-November of last year. This pattern has been influenced by several factors, such as the Federal Reserve’s hawkish stance and higher-than-expected inflation data, which have dampened market sentiment.

In addition, the market has priced in hopeful expectations that President Trump will create a strategic bitcoin reserve to give bitcoin more institutional support.

Currently, the present price of bitcoin is retesting the breakout level, which corresponds to the upper boundary of the wedge with the inauguration of President Trump a potential catalyst for the higher breakout.

There is still a lot of short-term upside potential for bitcoin if it can maintain this crucial support level, which would heighten optimistic market expectations even further.