The king of cryptocurrencies has started off on a downward descent after establishing an all-time high at a staggering price level of $64,000. With the price of Bitcoin now hovering near $55,000, traders are beginning to panic. The fear in the market was evident when the funding rate of Bitcoin futures fell to a record low of -0.3% in seven months. The technical indicators for the cryptocurrency have also turned bearish – indicating the dominance of sellers in the market.
Where analyst Willy Woo is calling to the traders to calm down, institutions are beginning to panic as well. Bitcoin had faced a lot of bashing from large institutions before its glory days but with their subsequent backing Bitcoin saw new levels of adoption. However, as the market for Bitcoin turned bearish, institutional support have begun to fade as well.
JPMorgan Chase & Co. has turned bearish on Bitcoin. JPMorgan strategist Nikolaos Panigirtzoglou has begun to worry about the Bitcoin dips – a note from a team of strategists led by Panigirtzoglou revealed. The strategist states that if Bitcoin is not able to reach back to $60,000, momentum levels will collapse.
Although Bitcoin had suffered from dips in the past few months, the flow impulse was sufficiently strong to allow Bitcoin to break resistance levels. However, the likelihood of that happening this time appears to be bleak, per JPMorgan.