- A top analyst from JPMorgan Chase & Co. sent out a caution stating that the current trend of Bitcoin (BTC) is disturbing and could put extended bearish pressure on the market leader.
- Based on the market trends, it indicates that there has been much FUD. Nevertheless, much of these have died, and market spectators anticipate Bitcoin price to bounce back to previous highs.
Bitcoin is currently striving to find bullish momentum. Since misfortune hit in the form of an $8,400 market crash last Sunday, the most prominent cryptocurrency is nevertheless needs to look like its previous self. In the outcome of this, JPMorgan has been sending an alert about digital assets. Its analyst considers the risks of Bitcoin will be jammed under the $60K range for longer than most holders might anticipate.
JPMorgan forewarns of progressive decline in momentum.
Nikolaos Panigirtzoglou, JPMorgan Chase chief strategist, understands that Bitcoin has seen a reset after last week’s record future markets liquidation. This situation is not new, but Panigirtzoglou observes there is a difference. Panigirtzoglou witnessed Prior liquidations in three other previous instances. The analysts noted an overall flow impulse that prompted a Bitcoin reaction back above critical levels.
During the past couple of days, Bitcoin futures markets experienced a steep liquidation similar to last mid-January, or mid-February, or even during the end November. Momentum indication will naturally decay from here for several months, given their still-elevated level.
At the time of press, Bitcoin is exchanging $55,800 with a marginal change in the last 24 hours. Since dropping below $60K, Bitcoin has failed to retest this level again. This drop is a critical psychological position for the digital asset to trigger momentum to reach higher places.
JPMorgan’s strategist sent out a warning that,
“Whether we see a repeat of those previous episodes in the current conjuncture remains to be seen. The likelihood it will happen again seems lower because momentum decay seems more advanced and thus more difficult to reverse. Flows into Bitcoin funds also appear weak.”
Market trend disagrees with JPMorgan.
Even though it seems to be like a bearish Bitcoin market for JPMorgan, market observers are confident that Bitcoin is set for higher highs in the weeks to come. Some of the reasons for the Sunday market crash were the Coinbase executives dumping stock and the mining hash rate crash from which have exposed as FUD engineered to trigger a crash.
This week, there have also been some positive developments, starting with Venmo now letting its 75M+ buy and sell Bitcoin and other cryptocurrencies. With users able to purchase digital assets with as little as $1, this is a significant step towards mass adoption.
Additionally, just a few hours ago, Reuters reported that Canadian digital asset management firm 3iQ had received regulatory clearance to list a Bitcoin Fund (QBTCu.TO) on Nasdaq Dubai. 3iQ has noted that the move has followed growing demand for a regulated Bitcoin product in the region. This move will make it a dual-listed fund after earlier in the year launching on the Toronto Stock Exchange. The fund currently has over $1.5 billion in management.
Bitcoin’s long-term view remains bullish, but in the short term, it remains in the balance. Any technical or market news could easily trigger a new cycle.
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