JPMorgan Warns of Bitcoin Weakness, as Futures Get Liquidated
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Nikolaos Panigirtzoglou witnessed such negative price action in
Bitcoin, buyers returned in time to prevent deeper slumps. This time, the JPMorgan Chase & Co. strategist is worried.
A worker inspects hardware devices as illuminated mining rigs operate inside racks at the CryptoUniverse cryptocurrency mining farm in Nadvoitsy, Russia
If the largest cryptocurrency isn’t able to break back above $60,000 soon, momentum signals will collapse, strategists led by Panigirtzoglou wrote in a note Tuesday. It’s likely traders including Commodity Trading Advisers (CTAs) and crypto funds were at least partly behind the buildup of long Bitcoin futures in recent weeks, as well as the unwind in past days, they said.
by Tyler Durden
The last month has seen Ethereum significantly outperform Bitcoin and today is no different as
Source: Bloomberg
Some context for that move shows ETH is once again at a critical level relative to BTC.
Source: Bloomberg
As CoinTelegraph notes, one main reason why the altcoin market is rallying is because altcoins generally saw sharper drops than BTC following the Coinbase listing. After the futures market recovered, following over $10 billion worth of liquidations on a single day, the appetite for risk-on assets within crypto also likely rose. This drove the demand for Ethereum, BNB, Dogecoin (DOGE), and many other cryptocurrencies with relatively high volume and valuation.
JPMorgan warns of Bitcoin weakness as futures liquidated bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Bitcoin has yet to recover from its unexplained weekend swoon, and now the investing public is on edge about the notoriously volatile token’s next move. Enter the chart watchers.
Noting that “a chart is a chart is a chart,” Tallbacken Capital Advisors’s Michael Purves sent a note Wednesday with a technical analysis of the coin’s trading patterns. Bitcoin’s recent highs weren’t confirmed by its relative strength index, among other things, and its upward momentum is fading, he said.
“From purely a technical perspective, the bullish case looks highly challenged here in the near term,” after its recent rally, wrote Purves, chief executive officer at the firm.
ASX to rise, global equities bounce back
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Australian shares are set to rebound and snap a two-day losing skid as global equities rallied both in Europe and the US.
ASX futures were up 37 points or 0.5 per cent to 7006 near 7am AEST. The currency edged up 0.4 per cent. The yield on the US 10-year note was flat at 1.56 per cent near 5pm in New York.
In New York, all three major benchmarks closed higher, rallying into the closing bell. The Dow was up 316 points or 0.9 per cent with 26 of its 30 components higher. The S&P 500 rose 0.9 per cent; the Nasdaq gained 1.2 per cent.