Bitcoin -BTCUSD
The Bitcoin price may not go back to $40,000 anytime soon, according to an analysis at analysts at JP Morgan. The BTC price is trading at $32,000, which is substantially lower than yesterday’s high of $34,800.
What happened: In a note to investors, analysts at JP Morgan argued that there was no immediate demand for Bitcoin to push its price back to $40,000 leave alone the all-time high of above $41,000.
They pointed to the relatively lackluster data from the Grayscale Bitcoin Trust, the publicly-traded vehicle popular among institutional investors. In the past few weeks, inflows into the trust have been growing at a slower speed that may not be able to support Bitcoin price. They wrote:
“At the moment, the institutional flow impulse behind the Grayscale Bitcoin Trust is not strong enough for Bitcoin to break out above $40,000. The risk is that momentum traders will continue to unwind Bitcoin futures positions.”
In another note, analysts at OKEX, a Bitcoin exchange, said that many whales had started to unwind their positions.
Another reason why Bitcoin price is struggling is that there are concerns that the Senate will not pass the $1.9 trillion package. That’s because some key senators have opposed sending $1,400 checks to all people. Therefore, this is important because some of that money would have gone to buy more Bitcoin.
The three-hour chart shows that the Bitcoin price has continued to be a bit volatile in the past few days. The BTC price is still more than 20% below its all-time high. Also, it has moved below the 25-day and 15-day weighted moving average. Notably, the currency seems to be forming a small head and shoulders pattern.
Therefore, there is a possibility that it will have a bounce in the short term and then resume the downward trend. Be on the lookout to the psychological level of $30,000 since any move below this price will send a signal that bears have prevailed.
