JPMorgan strategists identified short-term risks that could be the reason why Bitcoin price is still 'walking around' the $30.000 mark this weekend.
Having undergone several adjustments in the last two weeks, Bitcoin price still hovering around the $30.000 mark, almost showing no breakthrough.
A group of JPMorgan strategists identifying near-term risks has temporarily established a challenging price level for Bitcoin.
According to the JPMorgan team, blockchain data shows that investors sell cryptocurrency to cover their losses to some extent, and it is likely that “many positions still need to be liquidated through the market.”
Agreeing with the above view, Mr. David Grider, leading digital asset strategist at Fundstrat recommends that investors and traders need to be cautious and think of ways to reduce risks with transactions.
However, the JPMorgan strategist group also believes that there are positive signals from the stability of the cryptocurrency market in the future. In addition, the cost of Bitcoin production may increase as China pushes its mining operations abroad.
Some researchers argue that the marginal cost of production plays an important role in the Bitcoin price.
“The crypto market remains problematic, but also appears to be starting to recover,” the JPMorgan team said.
David Grider noted that Bitfinex currently has a large number of short orders - short positions are established. The last time there was a similar phenomenon, negative news from China sent the Bitcoin price plummeting.
Bitcoin recently dropped more than 6% to $30.150 on Saturday, before recovering slightly and now trading around $33.333. Other coins are also under heavy pressure, with Ether down more than 5%.
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