JP Morgan – Bitcoin Faces Uphill Task in the Short-Term June 28, 2021 June 28, 2021 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsJune 28, 2021 by Kelly Cromley

JP Morgan – Bitcoin Faces Uphill Task in the Short-Term

JPMorgan strategists Josh Younger and Veronica Mejia Bustamante wrote in a report that Bitcoin will tend to struggle as it settles near the $30,000 level. The short-term scenario, according to the experts, is “difficult.”

Moreover, they cautioned that the current sell-off was intended to compensate for losses, and that “there is probably still a backlog of deep holdings that must be cleared via the market.”

Luckily, Bitcoin has found firm support over $30,000, with dips being short and then a robust return. Days ago, another JPMorgan team cautioned that Bitcoin may eventually break to $25,000 in the following month due to the releasing of GBTC shares.

The team determined that if the $25,000 level was not broken, there would not be a total price collapse. Though wary of the near-term objective – with David Grider of Fundstrat Global Advisors LLC advising investors to limit risk or hedge – the revised view identified one bright spot in the market.

The steadiness in the Bitcoin futures market, as per the analysts, gave promise for a price rebound. In particular, the higher production costs resulting from China’s mining crackdown were expected to affect pricing. Apart from the fear mongering, the current mining clamp down favors a price gain, with Bitcoin becoming more attractive owing to a sharp reduction in liquidity.

“While the cryptocurrency market does not seem to be fully recovered, it does look to be on the mend.” As per our statistics, Bitcoin has risen over 5% this week and is now trading past $34,000.

For the time being, the $35,000 position remains elusive to the virtual currency. With it, the crypto king has succeeded to spur the rest of the market, with some of the biggest altcoins even surpassing the gains made by Bitcoin. Ethereum, for example, has risen over 10% and is already trading above $2,000 for the first time. The market has seen historic volatility in recent times, with price changes caused by the tiniest of events.

As a consequence, traders are divided on the direction of Bitcoin. The Bitcoin Fear & Greed Index shows that there is already “extreme fear” over the past month, indicating that speculators are concerned about the short-term trend. Moreover, according to a study done by PlanB, the inventor of the ‘Stock to Flow’ concept, a major portion of investors believe that Bitcoin will conclude the year over $100,000.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.