Bitcoin at Risk below $40,000, Says JPMorgan Strategists

Bitcoin’s failure to jump above $40,000 may result in a correction, according to JPMorgan’s strategists including Nikolaos Panigirtzoglou. The report also outlined the importance of Grayscale’s Bitcoin Trust for the future of the world’s largest cryptocurrency.

Panigirtzoglou said that the trend-following traders can trigger a drop in BTC price if Bitcoin fails to regain the $40,000 price level. He added that the leading digital currency was in a similar position in November last year with $20,000 as a price barrier but institutional money in December helped Bitcoin jump above the $20,000 level.

“The recent price action shows that the trend-following traders could propagate the last week’s correction and momentum signals will naturally decay from here up till the end of March if Bitcoin’s price fails to break above $40,000,” the strategists said in the report.

Institutional Money and Bitcoin’s Price

JPMorgan’s strategists have outlined the importance of institutional money inflows for the future of Bitcoin. In the latest report, they said that the inflows in Grayscale’s BTC Trust will provide hints about the outlook of the cryptocurrency.

“The pattern of demand for Bitcoin futures and the Grayscale Bitcoin Trust, the largest traded crypto fund, will provide clues about the outlook. The flow into the Grayscale Bitcoin Trust would likely need to sustain its $100 million per day pace over the coming days and weeks for such a breakout to occur,” the official note states.

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