JP Morgan Issues Bearish Bitcoin Note To Clientsbr>
JP Morgan, which has always been a nay-sayer on cryptocurrency, has issued a note to clients warning that bitcoin may bottom out at the $4,600 level if it doesn’t break its $10,000 level resistance.
Bitcoin is down more than 35 percent in 2018, and miles down from its $20,000 per single coin level of December. That’s given the bears ample opportunity to dance on its grave, abetted by increased government calls for regulation and other circumstances that have killed bull momentum.
Technical analysts at JP Morgan are telling clients that there may be a sell-off that hits $4,605, down from its current $8,000 level.
“The question is whether we go there straight away, indicated on a failure to clear 10128 and 10776, or at a later stage after a stronger countertrend rally,” said the note. A resistance barrier of $10,128 to $10,776 is the key. Top it and “the door for a broader countertrend rally to 14,334 if not to 16,304 (76.4% on different scales) would be wide open,” the bank said.