If the leading cryptocurrency isn’t able to break back above $60,000 soon, momentum signals will collapse, JPMorgan strategists noted.
In a note published Tuesday, JPMorgan strategists led by Panigirtzoglou predicted that if the leading cryptocurrency doesn’t crack out over $60,000 quickly, momentum signals would crash. Traders, including commodity trading advisers (CTAs) and crypto funds, are likely to blame for the latest accumulation of long Bitcoin futures, as well as the unwind in recent days, according to strategists. This year, Bitcoin has seen a huge surge, with its price regularly breaking fresh all-time highs.
JPMorgan strategists led by Panigirtzoglou forecast that if Bitcoin doesn’t break through $60,000 soon, momentum signals would collapse, according to a note published Tuesday. According to experts, buyers such as commodities trading advisors (CTAs) and blockchain funds are likely to have been at least partially responsible for the latest accumulation of long Bitcoin futures, as well as the unwind in recent days. Bitcoin has seen a massive rise this year, with the cryptocurrency’s price consistently hitting new all-time highs.
The bitcoin futures contracts are heavily liquidated.
According to Bloomberg, “Over the past few days, Bitcoin futures markets experienced a steep liquidation in a similar fashion to the middle of last February, middle of last January, or the end of last November,”. According to JPMorgan strategists “Momentum signals will naturally decay from here for several months, given their still-elevated level,” they said. The ultimate flow impulse, according to strategists, was high enough to enable Bitcoin to rapidly break out beyond the main thresholds in those three previous cases, allowing momentum traders to build up further positions.
Bitcoin is now priced at a price of $55,600.
Bitcoin, the foremost valuable cryptocurrency by market capitalization, peaked at $64,870 when Coinbase Global Inc. was listed on the Nasdaq but has since sunk below $60,000. The blockchain has now increased by about 90% year-to-date. At the time of publishing, BTC was selling for just over $55,600.” Whether we see a repetition of those past episodes in the new conjuncture remains to be seen.” the bank’s strategists stated. According to JPMorgan, the likelihood of it occurring again seems to be lower because momentum degradation seems to be farther along and hence more difficult to reverse.