The last time US bank JP Morgan warned about Bitcoin, it allowed traders and investors to avoid the worst scenario. Now, the US financial institution is worried again.
As stated, if the largest cryptocurrency isn’t able to break back above $60.000 soon, momentum signals will collapse.
It is very likely that the CTAs (Commodity Trading Advisors) are behind the long positions that have opened in the last few days in the futures contracts related to Bitcoin, as well as behind the fall recorded in the last few days. “In recent days, Bitcoin futures contracts have seen massive liquidations, as they did in mid-February, mid-January or late November,” said JP Morgan analysts.
In the previous three cases, the overall flow boost was strong enough to allow Bitcoin to break out quickly above the key thresholds, with momentum-based investors opening up new positions. It remains to be seen, then, whether what happened will be repeated.
“If we see a repeat of previous episodes in the current situation, it will be seen,” the strategists said. “The likelihood of something similar happening again seems less, because the momentum seems more advanced and therefore more difficult to reverse,” adds JP Morgan.
Bitcoin rose to $64.870 during the listing of Coinbase Global Inc. Nasdaq, but fell below $60.000. The cryptocurrency market is still at + 90% on an annual basis.