Bitcoin heads for a bear market, says JPmorgan, since BTC stuck at $ 37,000
Bitcoin heads for a bear market, says JPmorgan, since BTC stuck at $ 37,000
- Bitcoin showed signs of an upward trend in the middle of this week and achieved a price increase of 14 percent, but JPmorgan believes that the latest trends in the currency indicate a bear cycle.
- The persistent erosion of the market share of BTC now 44 percent is also a very worrying trend for the bank.
Bitcoin was bound to a span in the last week and acted in the middle of $ 30,000 in a sideways. On Tuesday there was a slight volatility that fell to just over $ 31,000 before accelerating the pace and recording the highest daily win for two weeks at 14 percent. Since then, however, it seems to be set at $ 37,000. And according to the JPmorgan there is reason to concern.
At the time of printing, the top cryptocurrency is traded at $ 37,320, which only fell by 1.5 percent last day. He marked an intra-day low at $ 35,847 and a high at $ 38,136
The month of June was still dark for Bitcoin, with cryptocurrency over over 40 percent this month. Be it the energy consumption debate, the hard through the US congress, the renewed hostility of the Chinese government or new calls to countries such as the Netherlands, to prohibit it, Bitcoin has a lot against it.
The trading volume has also experienced a significant decline and, at $ 40 billion, dropped by almost 25 percent last day. In total, the trading volume in June was $ 34.8 billion, a severe decline compared to its heyday in May and April, when it was $ 65 billion north. This is the lowest trading volume since December.
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jpmorgan sees darker days for Bitcoin ahead
Bitcoin is heading for darker days, believes the largest bank in the United States. In a message to investors, the analysts from JPMorgan pointed out a number of factors such as a decline in the appointment market as a reason for caution. The BTC's spot price is above its Futures Prize, which shows that institutional investors expect a further decline.
The analysts noticed: "We believe that the return to the baking test has been a negative signal in the past few weeks that indicates a bear market."
according to the report, which first appeared on Bloomberg, The current BTC-Futures-Trend reflects from 2018. This year BTC lost three quarters of its value after reaching almost 20,000 USD in December 2017
The analysts define bakingwardation as "an unusual development and a reflection of how weak the Bitcoin demand is currently from institutional investors who tend to use contracts that are listed at Chicago Mercantile Exchange".
JPMorgan BTC Backwardation chart with the kind approval of Bloomberg
The analysts are still concerned about the dwindling dominance of BTC. At the time of going to press, it is almost 44 percent. Although it has recovered a few points since 40 percent in mid -May, it is still below the 72 percent that it recorded on January 2 of this year.
According to JPMorgan, BTC's dominance must be at least 50 percent so that the bulls can take control again.
Source: Crypto-news-flash.com
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