JPMorgan Strategists Warn That Bitcoin Could Lose Bullish Steam If $40k Is Not Reclaimed Soon

JPMorgan Strategists Warn That Bitcoin Could Lose Bullish Steam If $40k Is Not Reclaimed Soon

According to a recent report by Bloomberg, JPMorgan Chase & Co strategists, led by Nikolaos Panigirtzoglou, have cited that Bitcoin (BTC) has to reclaim the $40k level soon or risks losing its bullish momentum and trend-following investors. The team added that the pattern of demand for BTC futures and the Grayscale Bitcoin Trust (GBTC) could serve as a reliable determinant.

Following its mouth-watering $42k record high in the first week of January, Bitcoin saw a significant correction to the tune of about $12k over a short period. JPM strategists highlighted that the benchmark cryptocurrency is currently replaying similar price action seen in November 2020, after it tested the $20k mark.

Furthermore, the strategists asserted that the massive influx of institutional investment entering GBTC encouraged the recent Bitcoin rally.

Meanwhile, JPMorgan recently shared a possible Bitcoin scenario, claiming that the cryptocurrency has taken a significant portion of investment influx from gold’s market share, which could be detrimental for the bullion.

Bitcoin’s fixed supply—like gold—has encouraged investors to believe that the digital asset might replace gold as the most-desired store of value in the future.

Analysts have said that since October, “money has poured into Bitcoin funds and out of gold, a trend that’s only going to continue in the long run as more institutional investors take a position in cryptocurrencies.”

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 18

Bitcoin is having difficulty sustaining its uptrend over the past few hours, as the cryptocurrency fails to reclaim the $37,827 resistance. However, it appears that the cryptocurrency is currently trading within an ascending channel, despite the difficulty to maintain a bull run over the hours. That said, we expect another attempt at the $37,827 resistance once again in the coming hours.

Meanwhile, our key resistance levels are at $36,500, $37,827, and $38,500. While our key support levels are at $34,474, $34,000 and $33,000.

Total Market Capitalization: $1.01 trillion

Bitcoin Market Capitalization: $670 billion

Bitcoin Dominance: 66%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.