фото показано с : zycrypto.com

Bitcoin has continued to play out in tight range since it found ground in the $29,000 area, a support area that was last established on diverse dates in January this year.

Whereas most observers seem to only harbor a bullish bias, JPMorgan has constantly held that that Bitcoin could further drop to $23,000 before gathering enough momentum to resume a bullish move. Only a few other retail investors seem to be alive to this possibility.

In a statement issued by the bank on June 23, institutional buyers are not buying at the current level and seem to be waiting on lower prices to get in.

This observation cannot be shrugged off given JPMorgan’s position of power and information in the financial institutions’ framework.

Price is a mirrored replica of people’s reaction to the market through actively buying and selling. Bitcoin’s price action (P.A.) cannot thus be taken too lightly, hence the mantra, trade what you see, not what you think. The current price action exhibited by the Bitcoin chart is too fear-provoking.

From a technical perspective, price is currently in a range which according to P.A. analysts is indicative of neutrality in the market. They often occur when there is an almost equal balance between buyers and sellers in the markets who try to fight for dominion on price hence leaving this sideways trail.

Ranges end up breaking out either way with the dominating side creating an imbalance. If the price breaks and closes below the $29,000 area, then it should not come as a surprise if Bitcoin easily descends to $23,000 as the bank’s strategists predict.

This weekend’s Grayscale scheduled GBTC unlocking of its shares has also played a role as JPMorgan believes that Bitcoin’s drop is far from over.

GBTC shares, which are unlocked after every 6 months with the next opening, expected this coming weekend could see investors take out or reduce their investments, plunging Bitcoin further below $29,000.

The bank asserts that the fair price of Bitcoin in the mid-term is between $23,000 and $35,000. Institutional investors would thus be willing to come in anywhere between these prices.

It is hence logical to state that no avid shopper would be willing to buy at a better price than $23,000 in order to maximize their profit potential and keep risk at minimum.

Final Thoughts

With price trapped in the current sideways market, having a neutral bias along the current range is always a good idea. JPMorgan’s sentiments are worthy of consideration even as one listens to other sentiments. Price will eventually define a path for itself once all this FUD is over.

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