For a while now, Bitcoin has consistently swung from $30k to $34k. The inclination is that there is a major resistance point between these values and JPMorgan Analysts have added credibility to this line of thought. The strategist holds the view that the short-term developments are not yet healthy enough to spur a thriving market.
The strategists from the renowned investment bank opine that the near-term setup for BTC is challenging. Essentially, the market conditions now appear to be striving to clear out the losses. However, the JPMorgan Chase team is indicating an overhang of underwater positions that need to be cleared through the market.
The team shared their views that there is a Ray of hope shining in the cryptocurrency market even as indicators don’t yet point to a healthy stand. Bitcoin for instance has been roughly hit with a myriad of issues of which the most notable is the mining crackdown in China. Besides this, the crypto asset is under severe scrutiny under other governments while others already have regulations placed on it.
Over the weekend, the value of Bitcoin sailed on the $30k marker before recovering to $33,445. On Sunday, it rose 6.5 percent ($33,329) indicating the highest range in two days. Altcoins filled suit with Ethereum clinching a five percent increase.
Recently, JPMorgan Chase hasn’t been entirely bullish on Bitcoin. It predicted that as the Grayscale Bitcoin Trust sets to unlock more Bitcoins the crypto could sink below $25k. According to them, the cryptocurrency could thrive gradually from that level.
The value of Bitcoin has halved in value today. In April it towered at $65,000 but by the middle of May, it plummeted greatly. Investors are anticipating a breakthrough as miners migrate to other favorable regions and institutions accumulate more Bitcoins.