Although in the past when resistance levels looked less than auspicious, bulls returned and kept the price of Bitcoin flying high. Now, JPMorgan Chase & Co. strategist Nikolaos Panigirtzoglou seems worried about the future of Bitcoin, according to a note published by him and fellow strategists.
Price Must Go Back Above The 60K Level
According to Panigirtzoglou, Bitcoin futures markets have largely been liquidated in the past few days, similar to the middle of previous months – and he foresees momentum stalling, if not quite fizzling out.
“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. Momentum signals will naturally decay from here for several months, given their still elevated level. Whether we see a repeat of those previous episodes in the current conjuncture remains to be seen.”
Although the price of Bitcoin soared to around AUD 83,700 around the time Coinbase was listed by NASDAQ, 1 BTC is currently worth around AUD 71,200 (at the time this article was written).
Some bearish traders allegedly predict that the lack of momentum may push the price even further back down to around AUD 64,500.
However, even if this scenario plays out – and it’s quite possible that it will – Bitcoin’s overall growth throughout 2020 and 2021 so far has been spectacular – and small nosedives happen all the time, after which prices tend to continue steadily climbing.
The note is not completely gloomy, however: it also notes that the hash rate seems to have recovered, and that going forward the amount of BTC liquidity should increase – and remain high.
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