Friday, October 22, 2021

New Bitcoin price concerns from JPMorgan at odds with ‘immense support’ at $52K

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Bitcoin (BTC) is seeing a tsunami of latest person adoption as a backdrop to costs probably bottoming at round $52,000, say analysts.

In a series of tweets on April 20, statistician Willy Woo led requires calm about Bitcoin’s latest value dip and subsequent lingering $9,000 beneath latest all-time highs.

$1 trillion cap has created new “line within the sand”

Reiterating previous assertions, Woo argued that purchaser help had firmly established Bitcoin as a trillion-dollar asset and that BTC/USD would, due to this fact, not fall a lot beneath the equal spot value to take care of it — round $53,000.

“This revisit of cheaper price has created extremely robust value validation for Bitcoin about $1T cap. 14% of the provision final moved above $1T cap,” he wrote.

“It is a key line within the sand imprinted into BTC’s value discovery, an space of immense help.”

Chart showing Bitcoin support strength at a $1 trillion market cap. Source: Willy Woo/ Twitter

Woo also highlighted the continued transfer of coins from weak hands to strong, along with a surge in new users entering the space. 

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For fellow analyst William Clemente, this “hockey stick” shape of new adoption was of essential significance.

“This is the most important post of this thread by far,” he replied to Woo, who famous that technical merchants had been far more bearish on Bitcoin regardless of the energy of on-chain indicators.

Bitcoin entity progress vs. BTC/USD. Supply: Willy Woo/ Twitter

JPMorgan turns bearish on BTC… once more

Amongst these was JPMorgan’s Nikolaos Panigirtzoglou, who in his newest observe argued that this value dip wouldn’t see consumers step in like earlier than.

Futures positions unwinding, he added, wouldn’t reverse and, thus, general curiosity in institutional Bitcoin bets would now fade.

“Over the previous few days Bitcoin futures markets skilled a steep liquidation similarly to the center of final February, center of final January or the tip of final November,” Bloomberg quoted the observe as stating.

“Momentum indicators will naturally decay from right here for a number of months, given their nonetheless elevated degree.”

On the time of writing, BTC/USD was nonetheless undecided on its short-term trajectory, clinging to $55,000 as indicators of life returned to sure altcoins.

One cryptocurrency now not outperforming was Dogecoin (DOGE), which was down 18% on Wednesday after “Dogecoin Day” — an try to spice up the value to $4.20 — fell flat on its face.

DOGE/USD remained up 160% in every week.