Bitcoin investors are waiting for the cryptocurrency to resume its uptrend and end this lateralization. However, JP Morgan strategist and Bitcoin expert Nikolaos Panigirtzoglou believes that the decline is not over yet .
“We had previously argued that the failure of Bitcoin to break above the $60,000 threshold would cause momentum signals to become mechanically more bearish. The long-term signal is still problematic. Price drops to the $26,000 level would still be needed before the longer-term momentum signals a capitulation”.Nikolaos Panigirtzoglou.
This weekend, including Memorial Day in the United States, Bitcoin fluctuated between $33,600 and $37,900, following the steep drop it went through after negative tweets from Elon Musk and fears of regulation by the governments of China and the United States.
The JP Morgan expert believes that the big drop in Bitcoin in May severely weakened institutional demand that was starting to pick up steam ahead of the negative news. For these reasons, Panigirtzoglou estimates a medium-term value for Bitcoin between $24,000 and $36,000.
“There is no doubt that the boom and bust dynamics of the past few weeks represents a setback for institutional adoption of the crypto markets and, in particular, of Bitcoin and Ethereum. We note that the mere increase in volatility, especially relative to gold, is an impediment to promoting institutional adoption, as it reduces the attractiveness of digital gold versus traditional gold in institutional portfolios”.Panigirtzoglou.https://cryptoreportage.com/altcoins-news/
On the other hand, Alesia Haas, CFO of Coinbase, took advantage of the fall of Bitcoin to remind investors of the risks in the cryptocurrency market.
“I think those who were new to this space may have underestimated the volatility that we can see in this market. But cryptocurrencies are volatile, and we must remember that this is a really young industry and a very fledgling asset class. We have seen a lot of volatility, we have been dealing with this from the beginning. The momentum we are seeing continues . There is a lot of interest in cryptocurrencies”.Haas.