BTC Needs To Surpass $40K In Order To Not Drop says JPMorgan Strategists
JPMorgan Chase & Co had its strategists, one of which being Nikolaos Panigirtzoglou, have recently voiced their views regarding Bitcoin and its ongoing price actions. According to these strategists, there are notable risks of Bitcoin dropping down further if the cryptocurrency fails to push back above the $40,000 mark.
BTC Will Either To $40K Or Be Heavily Corrected: Strategists
In particular, these strategists speculated that an exodus of investors following the trend could hurt the crypto space, but that’s only if the Bitcoin price levels can’t break out beyond that mystical $40,000 mark.
Further clues for the future outlook, according to these strategists, lies on the demand pattern for the Grayscale Bitcoin Trust and Bitcoin futures. Grayscale’s Bitcoin Trust stands as one of the largest crypto funds out there, so movement there will be a relatively accurate indicator.
On a note in Friday, these strategists speculated that the Grayscale Bitcoin Trust would most probably need to experience a sustained pace of $100 million a day in order to sustain the needed momentum for a breakout like that, needing to keep it for the next few weeks.
Crypto Capitalizing On Government Money Printing
As for traders trying to find the level of appetite the world’s investors have for risk, they’ve been having an interesting time of things. Bitcoin’s rally to a new high has seen the currency drop down by 11% as well, just as it neared a record price of $42,000 on the 8th of January, 2020.
Since March, when the entire crypto space halved itself in value in what became to be known as “Black Thursday,” the crypto space has seen a massive boom. This massive boom was supported in no small part thanks to the governments of the world printing money to try and stimulate the economy in order to counteract the pandemic’s economic impact.
Another Key Moment For BTC
The strategists of JPMorgan had concluded that Bitcoin stands in a position quite similar to what it had back in November of last year. The all-time-highs are just a little different this time. Much like that time, however, these strategists speculate that money flowing into the Grayscale Trust, worth a hefty $22.9 billion, could see Bitcoin extend its rally even more.
These strategists speculate that the traders following trends could start propagating the correction of last week, with momentum signals already decaying naturally. Strategists believe this will keep going until March, should Bitcoin not manage to push past the $40,000 mark once more.