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Bitcoin’s movement continues to show uncertainty. In recent days, trading takes place in a narrow framework of $ 28,000-30,000. A narrow trading range can be a signal to a close denouement, but where exactly will the cryptocurrency go? The lower limit of BTC has been tested many times, trading a sufficient amount of time np days. The drawdown does not occur, as at the level of 28600 the market sees a healthy reaction of buyers. Which, while not having enough power to push Bitcoin into a new range above $ 30,600, a decline down from which we have also seen several times.
In general, the first cryptocurrency in the last half of the year lost more than 55% of its value, dropping from a maximum of $ 69,990 to a minimum of $ 24,500 on May 12.
However, these are not the only losses in the financial markets. Not only cryptocurrencies, but also securities have lost significantly in recent months. This is especially noticeable on the popular shares of Tesla (TSL) – minus 45.09% since the beginning of the year, Coinbase (COIN) – minus 73.24%, Netflix (NFLX) – minus 68.58%.
Both markets have been in a position of extreme fear for a long time, and the Indicator of the Crypto Fear & Greed Index on May 12 even updated its local minimum – by 8 points, showing extreme fear in the market. Today, the index for Bitcoin is at 12 points, for securities – 14 points: extreme fear for both markets.
Despite this position, JPMorgan yesterday made an assumption of the real price of Bitcoin, which in their opinion is at the level of $ 38,000. The bank is confident in the development of cryptocurrencies by so much that it allowed the replacement of the real estate class with digital assets as the preferred alternative asset class along with hedge funds.
JPMorgan is confident that the correction of the cryptocurrency market last month is more like a capitulation comparable to January/February last year, and in the future there is growth potential for Bitcoin and the cryptocurrency markets as a whole.
Author: Ed Miscavige, Analyst at Freedman Club Crypto News
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