Bitcoin may be heading into a temporary cooldown, according to crypto financial services firm Matrixport.
In its latest report, the company suggests that a short-term correction could be brewing—even as broader economic signals remain supportive of risk assets.
Matrixport’s analysts point to waning momentum in technical indicators, noting that Bitcoin’s recent rally has pushed the RSI into overbought territory. With the price now hovering near $120,000, they suggest a retracement toward the $106,000–$108,000 zone could form the base for the next leg higher.
While the firm sees $122,000 as a reasonable short-term target, they argue that the market needs to “reset” before attempting another breakout. A correction, they say, wouldn’t break the broader uptrend that began at $16,000 nearly 18 months ago.
Falling U.S. inflation and growing expectations for a Federal Reserve rate cut have been positive tailwinds for crypto, but Matrixport cautions that overly bullish sentiment could lead to volatility . A stronger signal from the Fed may come as soon as the July 30 FOMC meeting, though September remains the more likely pivot point.
Despite the short-term caution, Matrixport emphasizes that the long-term bullish structure remains intact, though traders should be wary of potential double-top formations following steep rallies.
