In this paper, we quantize the image data to simplify the systolic array architecture for block matching algorithm. As the number of bits for pixel data to be processed is reduced by quantization, one can simplify the hardware of systolic array. Especially, if the bit serial input is used, one can even more simplify the structure of processing element. First, we analize the effect of quantization to a block matching. then we show the structure of quantizer and processing element when bit serial input is used. The simulation results applied to standard images have shown that the proposed block matching method has less prediction error than the conventional high speed algorithm.