According to a new Matrixport Research report, Bitcoin could dip to the support level of $36,739, but its price would rebound if overall liquidity and the macro environment remain supportive.
Bitcoin has endured a tough week, plunging below $40,000 for the first time since December. Things recently became worse for the top asset as it plummeted to around $38,680 on January 23, 2024.
However, Bitcoin has rebounded ever since, surging above the $40,000 mark. At press time, the world’s largest cryptocurrency was changing hands at $40,070, up 0.3% over the past 24 hours. Bitcoin’s recent rally above $40,000 has reignited investor confidence in the top asset.
Bitcoin to Dip to $36,739 and Rebound
However, despite the recovery, Matrixport Research predicted today that Bitcoin could plunge further to the support level of $36,739.
Like the recent price action of BTC, Matrixport also forecasted that Bitcoin could rebound from this support level as long as the overall macro environment and liquidity remain supportive.
The latest Matrixport report was revealed today in an X post by prominent crypto journalist Colin Wu.
A January 26 Matrixport research report predicted that Bitcoin will fall to the support level of $36,739, and the price will rebound from this support level, as the overall liquidity and macro environment remain supportive. It noted that TradeFi’s interest in a Bitcoin spot ETF…
— Wu Blockchain (@WuBlockchain) January 26, 2024
Rationale Behind BTC Upcoming Dip
Commenting on the rationale behind the upcoming dip, the pro-crypto journalist said TradFi’s interest in the recently approved Bitcoin spot ETFs has not been as strong as expected.
Additionally, he mentioned that the upcoming dip could stem from Grayscale Bitcoin Trust (GBTC) investors continuously making a profit. Grayscale was among the asset managers approved to launch spot-based Bitcoin ETFs in the U.S.
Following the approval, Grayscale has been moving huge amounts of Bitcoin to Coinbase Prime, the custodian platform of San Francisco-based exchange Coinbase.
Yesterday, Grayscale deposited another 9,434 BTC to the custodian platform, bringing its total deposit since the ETF approval to 103,134 BTC ($4.23 billion).
Grayscale deposited 9,434 $BTC($376.5M) to #CoinbasePrime again 8 mins ago.#Grayscale has deposited 103,134 $BTC($4.23B) to #CoinbasePrime since the #ETF was passed.
And #Grayscale currently holds 510,682 $BTC($20.43B).https://t.co/6fjPOhvFox pic.twitter.com/FHaXDCHUqY
— Lookonchain (@lookonchain) January 25, 2024
Grayscale’s BTC movement to Coinbase has sparked mixed reactions in the crypto community. Some crypto enthusiasts see the outflow as Grayscale dumping its BTC holding. Apparently, Grayscale has sent the BTC from its trust for safekeeping.
Matrixport Previous Predictions
Meanwhile, Matrixport’s recent prediction about Bitcoin comes weeks after it predicted that BTC would surge to $50,000. According to the analysis, the approval of Bitcoin Spot ETFs will be the significant factor that would drive BTC to the $50,000 price level.
Despite the SEC approving multiple Bitcoin ETFs on January 10, BTC is still changing hands at $40,000, with Matrixport predicting that the top asset class could plunge to $36,739 before rebounding.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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