JPMorgan predicts a decent comeback in the cryptocurrency market beginning in August, but has decreased year-to-date net flows from $12 billion to $8 billion.
According to a study analysis published by J.P. Morgan, Bitcoin costs will rebound strongly in August. Despite the massive drop, this giant banking corporation is hopeful.
A significant finding in JPMorgan’s analysis is that the market will see a slowdown in the flood of cryptocurrency liquidations this month.
The bank has brought down its figure for year-to-date cryptocurrency net inflows from $12 billion to $8 billion. This adjustment provides a more realistic view of the state of the market, as it is based on recent trends and data.
It stated that its previous estimate of $12 billion was unduly optimistic given the circumstances, citing the fact that Bitcoin’s price was significantly greater than its production cost and even the price of gold, making $12 billion implausible.
However, the $8 billion shows a more realistic approach to analyzing the Bitcoin economy. At press time, BTC was worth $57,290, a significant drop from its March all-time high of $73,737.
Bitcoin has witnessed the same number of double top and double bottom formations in the last month, indicating that bulls and bears have an equal probability of seizing control. However, none have done so as yet.
Source: TradingView
The OBV oscillator has a negative esteem, showing that offering weight is more grounded than buying pressure. The MACD line is underneath the signal line, and both are in negative region, demonstrating another solid bearish single.
Moreover, the RSI is 36.69, which is underneath the unbiased level. The technical indications indicate a continuing bearish trend. If the stock fails to break over the immediate resistance level of $60,000, we may see more losses to the support level of $53,000.
It is possible that the price will test lower support levels, as the strong negative OBV and MACD indicate that there is still a lot of selling pressure. Bitcoin needs to break and stay above the $60,000 barrier level for a positive reversal to occur.
A bullish crossover in the MACD and a rise in the RSI towards the unbiased level would be required to affirm the spike. If the buying volume increases significantly, we could see a test of the upper Fibonacci band at $76,000.
