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Banking Giant JPMorgan Unfazed by Crypto Downturn

Published 2023-08-31, 03:08 a/m
© Reuters. Banking Giant JPMorgan Unfazed by Crypto Downturn
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U.Today - A from JPMorgan Chase (NYSE:JPM) & Co. indicates that the recent downward spiral in cryptocurrency markets may soon abate.

Nikolaos Panigirtzoglou has pointed to the decline in open interest in futures contracts as a sign that the sell-off might be nearing its conclusion.

Open interest—defined as the number of unsettled and active futures contracts trading on exchanges—serves as an indicator of a price trend's momentum. A decline in open interest generally suggests that the price trend is losing steam, thus signaling a limited downside for crypto markets in the near term.

Still in bull territory?

Notably, JPMorgan's view is in line with that of anonymous cryptocurrency analyst Dave the Wave. In on X (formerly Twitter), Dave the Wave highlighted that Bitcoin's weekly Moving Average Convergence Divergence (MACD) is still above the zero-line, suggesting the cryptocurrency is still in bull territory. Unlike the steep rise outside of the Low Ground Cover (LGC) buyzone observed in 2019, the current MACD patterns indicate a lower risk of a drastic correction back to the buyzone. Dave the Wave anticipates that the MACD will bounce off the zero-line and maintain its bullish stance.

Lackluster price action

After spiking to $28,000, Bitcoin's price recently retreated to the $27,000 level, even in light of positive news from .

As , prominent analyst Mike McGlone recently opined that $30,000 may be the new $12,000 for the largest cryptocurrency.

Considering that the Fed is still determined to tame inflation, Bitcoin might keep struggling to stage an impressive rally.

This article was originally published on U.Today

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