Bitcoin is expected to retain its upward momentum if it successfully defends the key support level, Matrixport says.
After breaking out of a narrowing wedge pattern, Bitcoin (BTC) now faces a pivotal test at $89,260, a support level seen as crucial for its continued upward momentum. In an X post on Jan. 21, Singapore-based blockchain firm Matrixport said that Bitcoin’s price outlook depends on staying above this threshold.
In a chart shared by the firm, Bitcoin is seen breaking out of a narrowing wedge pattern. The cryptocurrency, with a market capitalization of more than 2 trillion, has been retesting the breakout level at $98,042, which analysts see as a critical area for its price momentum.
Today\'s 📈 – Jan 21: #Bitcoin Breaks Out: Retesting Key Support for a Bullish Outlook🆙#Matrixport #MarketInsights #BTC #Trumpcoin #CryptoFinance pic.twitter.com/apqrkCCHRa
— Matrixport Official (@Matrixport_EN) January 21, 2025
“Bitcoin is now retesting the breakout level,” independent analyst Markus Thielen wrote in the analysis, adding that if BTC stays above the support, the short-term outlook will remain “highly bullish.” Since mid-November, Bitcoin has been moving within a wedge pattern. According to Matrixport, a mix of factors has shaped its price, including inflation concerns and optimism around potential strategic moves in the market.
While the report is optimistic, it adds a condition: Bitcoin must defend the support level in the coming days to maintain its bullish outlook. As of press time, Bitcoin is trading at $103,497, while the total crypto market cap sits at $3.56 trillion.