[Analysis] "Bitcoin Approaching Technical Ceiling... Potential for Range-Bound Movement over the Next 1–2 Months"

Virtual asset (cryptocurrency) investment firm Matrixport has assessed that Bitcoin may be entering a sideways phase during the summer. With the price nearing its technical ceiling, the analysis suggests that a consolidation phase could occur in the short term before further gains.

According to the virtual asset-specialized media outlet Blockbit on the 18th, Matrixport stated in a research report released that day, "With the recent positive trend in U.S. policies and economic indicators, Bitcoin (BTC) has entered a new price range." However, they projected that "the current price is close to upper resistance, and technical indicators suggest that a phase of stagnation may unfold over the next 1–2 months."

It is interpreted that although Bitcoin remains in an upward trend, it could enter a phase of searching for direction near the peak in the short term.

The report explained that over the past 18 months, BTC has exhibited a staircase-like upward trend of roughly $16,000 increments. The first quarter peak of $106,000 has turned into a support level in the second quarter, while $122,000 is now presented as the next target price. Recently, Bitcoin temporarily broke through this level but was pushed back again.

From a technical perspective, Bitcoin's Relative Strength Index (RSI) has surpassed 70, entering an overbought phase, and some reversal signals have also been detected. The report stated, "Bitcoin may stabilize and consolidate in the $106,000–$108,000 range in the short term," and added, "If this range is maintained, it could establish the technical basis for further advances."

Meanwhile, Matrixport does not see a high probability that the U.S. central bank, the Fed, will directly announce an interest rate cut at the upcoming meeting on the 30th. The report added, "Ahead of a rate adjustment in September, there could be signals that help align market expectations."