JPMorgan names one thing to watch as Bitcoin price is struggling to reclaim $40,000
At press time, Bitcoin price is trading around $ 36,465, recording a 5% increase in the past 24 hours. At current prices, JPMorgan Chase analyst Nikolaos Panigirtzoglou believes Bitcoin could face a stronger correction if it fails to regain $ 40,000. And maybe this story will happen soon …
JPMorgan: Be careful in the midst of a time when Bitcoin price is struggling to rebound to $ 40,000
Failure to resume Bitcoin’s rally may cause trend-followers to give up. BTC spiked above the aforementioned levels on January 14 after its sharpest drop since March. However, this caused no more buying pressure and Bitcoin quickly overcame some of its gains.
Commodity trader Peter Brandt is seemingly on the same page with JPMorgan, tweeting that the orange coin needed to blast off from there to avert a more complicated correction.
In which, JPMorgan recommends keeping an eye on the cash flow of Grayscale. Because of this, it is necessary to monitor the moves of large institutions to predict the move of Bitcoin in the future. JPMorgan strategists have estimated that they will need to stay above $ 100 million per day for BTC to continue its momentum.
A report from JPMorgan stated:
“The flow into the Grayscale Bitcoin Trust would likely need to sustain its $100 million per day pace over the coming days and weeks for such a breakout to occur.”
Perhaps according to JPMorgan, Grayscale helped Bitcoin conquer the $ 20,000 mark at the beginning of December. So let’s see if the market is still the same at the $ 40,000 price tag.
— Peter Brandt (@PeterLBrandt) January 18, 2021
According to Grayscale’s newly appointed CEO Michael Sonnenshine, Grayscale’s portfolio of investment products attracted $ 3.3 billion in capital inflows in the fourth quarter. Grayscale Bitcoin Trust alone currently has $ 22,901 billion and Sonnenshine says there has been a diversification push towards alternative currencies among their customers.
The report stated:
“Certainly most investors’ first taste of #crypto is #bitcoin, but have increasingly been seeing a push for diversification within the asset class from our institutions.”
You can see the BTC price here.
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