The Bitcoin crash continues this week as well. For the past month, BTC has been sent on a downward spiral, although the short-term technical indicators show a bullish trend. For all its tries, Bitcoin has simply been unable to climb past the $40,000 mark. After a recent 2-day gain, the largest cryptocurrency by market volume was rejected at $38K.
Bitcoin’s massive drop in May of over 35% has scared off many investors. It’s one of the sharpest drops on record, but the prices are still up on a yearly basis. According to experts, Bitcoin’s price congestion between $30K and $40K has the shape of a symmetrical triangle, with the intermediate-term momentum being on the downside.
Experts are hoping that the rebound is a short-lived one and it should eventually give way to another lower high.
Resistance at the Upper End of the Triangle
The lower end of the triangle offers support of the psychological level of $30K. The resistance at the moment is around $38,900 at the upper end of the triangle. This is followed by the 200-day moving average of $41,252 which is a positive sign.
The weekly MACD chart remains above zero and a bit bearish. Currently, the market is locked in a downward trend, but price swings are not uncommon. Daily MACD charts show the potential for a triangle breakout many investors have been hoping for.
In the long run, Bitcoin is expected to make another break from the pre-May heights. While many investors have been scared away by the price swings and the downward momentum, those smart enough know that it’s simply the way of the game. Remember where Bitcoin was more than 12 months before? Many believed that’s the end of cryptocurrencies as we know it, yet it persevered and soared to new heights.
JP Morgan Adamant That the Worst is Yet to Come
According to financial analysts from JP Morgan, Bitcoin’s inability to break past the $60K mark was the reason that brought it to its knees. The financial giant says that the worst is yet to come, with further price declines expected in the long run. Finance experts believe that the crash has shattered institutional demand which will keep the prices low, at least for now.
In the mid-run, JP Morgan sees Bitcoin’s price between $24,000 and $36,000. Any market capitulation and panic may come at a dip below $26K. Gold’s rise in volatility reduces the attractivity of digital finances in institutional portfolios, making it clear that we’re in for more of the same.
On the positive side, crypto interest has been at an all time-high. According to experts, Coinbase’s second quarter is still on track. The leading global crypto exchange went public in April via a direct listing, and Bitcoin’s price swings and dips don’t seem to have a big effect on it.
The momentum may currently look bad, but Bitcoin and cryptos will be back bigger and better than before. We’re way past the point of bubble burst, so no need to panic for now.