JP Morgan: Chances of bitcoin's further rise diminishing - - Financial Market Media No. 1 in the World JP Morgan: Chances of bitcoin's further rise diminishing JP Morgan: Chances of bitcoin's further rise diminishing

April 23, 2021

JP Morgan: Chances of bitcoin's further rise diminishing

 Bitcoin continues to gradually fall. On the one hand, there is still no certainty that the long-term growth of bitcoin is over. It will be possible to talk about this only after confidently overcoming the support level of $50,770. On the other hand, the growth of bitcoin quotes over the past six months or a year looks identical to a similar rise in 2013 and 2017. Each time, after a fast and strong growth in quotes, a slower and smoother downward trend followed, which led to a depreciation of the cryptocurrency by 80-90%. Thus, from a purely technical point of view, we can already assume that a new downward trend has begun. Of course, as one of the tenets of forex trading says, past profitability does not guarantee future profits. That is, if bitcoin grew twice quickly and fell slowly, this does not mean it will be the same for the third time. Although, as we said, now the picture is very similar to the scenarios of 2013 and 2017.

On the hourly time frame, such a trend line has formed, which already indicates a downward trend. Thus, to reverse the nascent long-term downward trend, buyers need to urgently return digital gold above the $57,200 mark. In the coming days, we should see if they can do this.

Meanwhile, one of JP Morgan strategists Nikolaos Panigirtzoglou said that the chances of further bitcoin growth are decreasing. According to the analyst, the liquidation of long positions in bitcoin in the amount of $10 billion (during the last collapse of quotes on Sunday) may mean that the crypto instrument is ready for a more serious correction. Panigirtzoglou believes that if the cryptocurrency fails to return to the area above $60,000 shortly, then the downward correction will continue. We note that the JP Morgan strategist says in his analysis that there has been a weakening of bullish momentum at this time, so the likelihood of a quick recovery looks low.

But a survey among American adults conducted by the Gemini cryptocurrency exchange shows about 14% already have investments in cryptocurrency, and 13% are going to make them before the end of 2021. About 63% of the surveyed Americans who do not yet have crypto investments want to learn more about cryptocurrencies and, possibly, invest in them in the future. Thus, the cryptocurrency exchange with the results of its research wants to show that even ordinary Americans (even those who have an income of 40,000 per year, which is considered a very low indicator for America) are interested in cryptocurrency and are going to invest in it. From our point of view, such studies are being done to popularize cryptocurrencies in low-income segments of the population. The goal is to show that even ordinary American workers are interested in bitcoin and are eager to invest in it.