Bitcoin (CRYPTO: BTC) faces a major correction if it doesn’t top $ 60,000 soon, according to JPMorgan strategist Nikolaos Panigirtzoglou.
What happened: JPMorgan strategists led by Panigirtzoglou wrote in a note on Tuesday that Bitcoin’s momentum will collapse if it doesn’t recover $ 60,000 soon.
Panigirtzoglou stated that “Bitcoin futures markets have been experiencing a steep liquidation in recent days,” such as last February, mid-January or late November.
The comments follow Sunday’s 9% correction, which some experts say was triggered by news of a power outage in China that wiped out a significant portion of the network’s hashrate.
Why it matters: In the months mentioned above, Bitcoin’s flow momentum was strong enough to allow the cryptocurrency to rebound above key technical levels, prompting momentum traders to further build their long positions.
Therefore, the JPMorgan strategist believes the uptrend will be weakened if Bitcoin does not recover the $ 60,000 key soon.
“Momentum signals will of course decay from here for several months given their still high level,” he wrote.
While Panigirtzoglou admitted that it remains to be seen if Bitcoin recovers this time as it did after the aforementioned fixes, it is less likely as this time lapse seems more sophisticated and thus more difficult to reverse.
Price promotion: BTC is currently trading below its 50-day moving average at around $ 54,204, down 5.31% over the past twenty-four hours.
Also see: Bitcoin could drop to $ 20,000, according to Guggenheim’s CIO
If the coin doesn’t break this short-term trendline, it could lose an additional 10% and test the USD 50,000 level.
The next support area would be the 100-day moving average of $ 49,212, down 11% from Wednesday’s price.
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