Proactive Investors - Bitcoin prices staged a rally on Monday after dipping under $26,000 on Monday morning.
The most valuable coin by market capitalization hovered around US$25,900 in early trading but recovered to reach around $26,162 by midday as cryptocurrency prices across the board eased amidst a downward trend that has persisted throughout August.
Other major cryptocurrencies like XRP, ADA, and SOL saw losses of up to 2.2%, while Ethereum (ETH), the second largest cryptocurrency, also suffered a 1.1% decrease in value over the past 24 hours.
For months, Bitcoin had managed to maintain a stable position above the $26,000 mark, a level it had consistently held since June. However, the recent volatility has sparked concerns among analysts, who suggest that it reflects growing pessimism and negative price trends among cryptocurrency traders.
But at least one group is bullish. The cryptocurrency market's recent decline may be nearing its end, according to JPMorgan (NYSE:JPM). Analysts from the US bank suggest that the majority of long position liquidations have already occurred, based on data from the Chicago Mercantile Exchange (CME), where open interest in Bitcoin (BTC) futures contracts has decreased to $26,105.
The decline in Bitcoin's open interest is being interpreted by JPMorgan analysts as a potential indicator of a weakening selling trend. They suggest that this development could result in limited downside for cryptocurrency markets in the near future.
In essence, it appears that the worst of the recent downturn in the cryptocurrency market may be behind us, according to JPMorgan's research.
Current options activity indicates that traders are preparing for further potential declines in Bitcoin's price in the near future.