JPMorgan: Bitcoin will struggle to reach $60K again

  • A top JPMorgan Chase & Co. strategist warned that the current Bitcoin trend is worrying and could put prolonged bearish pressure on the market leader.
  • Market trends suggest that there has been a lot of FUD but much of these have died and market observers expect Bitcoin price to rebound to previous highs.

Bitcoin is currently struggling to find bullish momentum. Since tragedy hit in the form of an $8,400 market crash on Sunday, the top digital asset is yet to look like its former self. In the aftermath of this, JPMorgan has been warning about the digital asset. Its strategist believes Bitcoin risks being stuck under $60K for longer than most holders might expect.

JPMorgan warns of advanced momentum decay

JPMorgan Chase chief strategist, Nikolaos Panigirtzoglou, believes that Bitcoin has seen a reset after last week’s record future markets liquidation. This is not new, but Panigirtzoglou observes there is a difference. Prior liquidations were witnessed in three other previous instances. The analysts noted that there was an overall flow impulse that prompted a Bitcoin reaction back above key levels then.

Over the past few days, Bitcoin futures markets experienced a steep liquidation in a similar fashion to the middle of last February, middle of last January or the end of last November. Momentum signals will naturally decay from here for several months, given their still-elevated level.

At the time of press, Bitcoin is exchanging for $55,800 with a marginal change in the last 24 hours. Bitcoin since dropping below $60K has failed to retest this level again. This is a key psychological position for the digital asset that will trigger momentum to reach higher positions.

The strategist warned, “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.”

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Market trend contradicts JPMorgan

While JPMorgan has a bearish view of Bitcoin, market observers are confident that Bitcoin is set for higher highs in the weeks to come. Some of the reasons blamed for the Sunday market crash were, the Coinbase executives dumping stock and the mining hash rate crash. Both have been exposed as FUD engineered to trigger a crash.

There has also been some positive developments this week, starting with Venmo now letting its 75M+ to buy and sell Bitcoin and other cryptocurrencies. With users able to purchase digital assets with as little as $1, this is a major step towards mass adoption.

Additionally, just a few hours ago, Reuters reported that Canadian digital asset management firm 3iQ has 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 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.

About Author

John Kiguru is an astute writer with a great love for cryptocurrency and its underlining technology. All day he is exploring new digital innovations to bring his audience the latest developments.

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