Bitcoin (CRYPTO: BTC) is, according to JPMorgan strategist Nikolaos Panigirtzoglou, a major correction if it does not rise more than $ 60,000 soon.
What happened: JPMorgan strategists led by Panigirtzoglou wrote in a note on Tuesday that Bitcoin’s momentum would collapse if it did not recover $ 60,000 soon.
Panigirtzoglou said that ‘Bitcoin futures markets have been experiencing a strong liquidation over the past few days’ such as last February, mid-January or end of November.
The remarks follow Sunday’s 9% correction, which experts say was caused by news of a power outage in China that eliminates a significant portion of the network’s hash rates.
Why it matters: In the above months, the flow impulse of Bitcoin was strong enough to allow the cryptocurrency to recover above the key technical levels, which led to momentum traders building up their long positions further.
As a result, the JPMorgan strategist believes that the upward trend will weaken if Bitcoin does not soon recover the key $ 60,000.
“Momentum signals will naturally lapse for several months, given their ever-increasing level,” he wrote.
Although Panigirtzoglou conceded that it remains to be seen whether Bitcoin will recover this time after the above corrections, it is less likely as the momentum decline seems more advanced and therefore more difficult to reverse.
Price action: BTC is currently trading below its 50-day moving average of $ 54,204, 5.31% lower over the past twenty-four hours.
See also: According to Guggenheim’s CIO, Bitcoin could fall as low as $ 20,000
If the currency does not break this trend line in the short term, it could lose another 10% and test the $ 50,000 level.
The next support area is the 100-day moving average at $ 49,212, 11% lower than Wednesday’s price.
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