Bitcoin’s Recent Boom Hasn’t Dispelled Doubts of Its Insecurity
Its top price has seen a drop of up to 50% so far, but there has also been a 10% jump which shows that it is a risky investment.
Prices fell 10% on Monday
The return of bitcoin this year has been nothing special but non-existent.
It was priced at $31,947 on Monday and had a market cap of $598 billion. It was trading at $36,993 at 9 am today.
Bull Markets Can Be Happy
However, the bull market may be happy with this bounce. JPMorgan Chase & Co has asked investors to be careful. Strategists at JP Morgan said that we believe that the kind of developments seen in recent weeks is showing signs of a bearish market. He added that the falling bitcoin price points to a worrying trend.
Traders waiting for a bright opportunity
Traders are waiting for some bullish opportunity in which the price of bitcoin reaches the range of $30,000 to $40,000. It was at around $65,000 in April and has been declining since then. A few days ago, Tesla’s Elon Musk criticized the need for digital currency. A Chinese regulator also took some action on it, which has hampered its popularity.
However, it picked up a bit after El Salvador declared bitcoin a legal tender. Bitcoin was firstly legalized in El Salvador.
Price should go up to $39,460
Pepperstone Financial PTY head Chris Weston wrote in his research note on Thursday that the virtual currency should move to $39,460 and stay near its top in order to restore its credibility. But we would like to take a break to test this bullish momentum to realize that we have exited the period of weakness.
70% value less than the beginning of the year
Meanwhile, according to data from tracker CoinGecko, bitcoin’s share of the overall crypto market cap currently stands at 42%. This is about 70% less than the value at the beginning of this year. JP Morgan’s strategists said bitcoin’s stock may need to top 50% in order to rein in the debate on the current bearish market.
This is it for today, will meet in the next article
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