In a research report that JPMorgan recently published, the company predicts that Bitcoin will experience a positive recovery during August. In light of the recent significant market downturn, the banking behemoth continues to maintain a positive outlook regarding the possibility of a rebound. The company anticipates a decrease in the number of cryptocurrency liquidations in the coming month, which is a positive sign at this time.
Updated Estimates for Crypto Net Flow
It has been determined that the bank has revised its estimate of the net flow of cryptocurrency for the year to date, bringing it down from $12 billion to $8 billion. A more accurate depiction of the current state of affairs is provided by this modification, which takes into account the most recent developments in the market and incorporates the most recent data. In light of the fact that the price of Bitcoin has far surpassed its production cost and has even surpassed the value of gold, JPMorgan acknowledged that its previous projection of $12 billion was overly optimistic. This realization rendered the initial estimate inappropriate for use in practice.
Present State of the Market
The current trading price of Bitcoin is $57,290, as stated in the report. This represents a significant decrease when compared to the price at which it reached its all-time high of $73,737 before March. The previous month, Bitcoin displayed an even number of double top and double bottom patterns, which suggests that both bulls and bears have an equal opportunity to seize control of the cryptocurrency. However, neither bull nor bear has emerged as the dominant force in the cryptocurrency market.
Indicators for Technical Analysis
The On-Balance-Volume (OBV) Oscillator displays a pessimistic reading, which indicates that the selling pressure is greater than the buying pressure. At the present moment, the MACD line is situated below the signal line, and both lines are in negative territory, which indicates that a bearish trend is occurring. Additionally, the Relative Strength Index (RSI) is currently falling below the neutral level, specifically at 36.69, which is further evidence that bearish momentum is continuing to be present.
Levels of Price Resistance and Support
In order to establish that a bullish reversal has occurred, Bitcoin must first break through the current resistance level of $60,000 and then continue to surpass it. In the event that this level of resistance is not damaged, there is a significant possibility that the price will continue to fall until it reaches the support level located at $53,000. A bullish crossover in the MACD and an upward movement in the RSI toward the neutral level are both necessary for confirming a surge in buying volume.
Both of these patterns must co-occur. Should this occur, Bitcoin has the potential to reach the upper range of the Fibonacci band, which is approximately $76,000. This would be a significant achievement for the cryptocurrency. The report that JPMorgan released presents a cautious yet optimistic perspective, indicating that despite the prevalent pessimistic patterns, there is a possibility that Bitcoin will recover in the days that are to come.
