Crypto Market is Healing and Expects More Decline before Capitulation — says JP Morgan
Last Friday, JPMorgan Chase’s analysts, Josh Younger and Veronica Mejia Bustamante, published an investor note that wrote about the outlook of cryptocurrency market.
They explained that the crypto market outlook is challenging in short term, as blockchain data suggests there will be more sell-offs recently to cover losses.
“There is likely still an overhang of underwater positions which need to be cleared through the market,” they detailed.
JPMorgan’s analysts also warned the public of the possibility of surge in Bitcoin’s production costs due to China’s crackdown which will push the mining of the cryptocurrency abroad. However, the stability in bitcoin futures market is still a positive factor for them.
“Cryptocurrency market shows signs that it is not yet healthy, [but] it does also appear to be beginning the process of healing,” they concluded.
However, another JPMorgan analyst, Nikolaos Panigirtzoglou wrote last week that despite the recent correction, the negative outlook for Bitcoin and crypto markets cannot be abandoned. He emphasized that the crypto markets are still giving a bearish signal in overall.
“It would still take price declines to the $25,000 level before longer-term momentum would signal capitulation,” he elaborated.
Source: https://news.bitcoin.com/jpmorgan-crypto-market-healing-price-decline-before-capitulation/
