empty
 
 

26.05.202211:55 Forex Analysis & Reviews: Bitcoin's fair price is at $38k, says JPMorgan: what does this mean for the cryptocurrency?

Over the past week, Bitcoin has established itself as the new stablecoin. The asset continues to actively move in a strictly defined range of $29k–$30k without prerequisites for going beyond this area. The main reason for the melancholic movement of the cryptocurrency was a week of high volatility in the digital asset market and the renewal of the local BTC bottom around $24k. The current price movement can be defined as stabilization before a trend reversal.

JPMorgan experts do not confirm this trend, but at the same time said that the fair value of Bitcoin is around $38k. That is, the digital asset is trading $8k below a level that reflects its true value. This suggests that the cryptocurrency is seriously undervalued and its current value and opportunities are much wider. Will this be a signal for further growth? Most likely not. In the short term, the asset may indeed reach the $33k–$35k range, but there is no talk of a full reversal.

The price drop below $30k, weak prospects for further growth, and a serious undervaluation of Bitcoin are a direct result of extreme conditions in both the market and the macroeconomic arena. The markets are now in conditions they have never experienced before. The uncertainty is forcing investors to massively transfer capital into assets that are directly supported by regulatory authorities.

Exchange Rates 26.05.2022 analysis

Bitcoin, on the contrary, is losing ground due to the increased correlation with the stock markets. The co-dependence of the markets was due to a similar investment model during the coronavirus crisis, which subsequently provoked an identical process and pace of liquidity withdrawal. In such a situation, investors do not analyze the prospects of a particular asset, but pursue capital preservation goals.

Exchange Rates 26.05.2022 analysis

At the same time, JPMorgan claims that the current price drop below the fair mark is more like a capitulation of investors. In other words, some of the players have completely unloaded their portfolios, and the released volumes are exerting powerful pressure on BTC/USD quotes. Judging by the growing volume of BTC coins that are being withdrawn from crypto exchanges, a significant part of investors continue to accumulate assets. This is also facilitated by the local correction of the dollar index. The only clear obstacle that will not allow Bitcoin to make a trend reversal in the short term is the start of a quantitative tightening program.

Exchange Rates 26.05.2022 analysis

First of all, this program will affect the stock market, but given the high correlation, the crypto market will also be seriously affected. When the downward movement resumes, the main targets will be in the $20k–$25k area. An important psychological mark for investors will be the level of $20k, the breakdown of which will bring the price in the area of $15k, where the potential of the "Head and Shoulders," as well as the "bear flag" passes. In any case, investors cannot fully determine the consequences of the withdrawal of $45 billion in June, and therefore it is worth waiting for an increase in volatility and spontaneous actions of crypto market players.

Exchange Rates 26.05.2022 analysis

*Phân tích thị trường được đăng tải ở đây có nghĩa là để gia tăng nhận thức của bạn, nhưng không đưa ra các chỉ dẫn để thực hiện một giao dịch.

Artem Petrenko,
Chuyên gia phân tích của InstaForex
© 2007-2022
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade



  • Giao dịch khôn ngoan, thành công
    Nạp tiền vào tài khoản của bạn với ít nhất $ 500, đăng ký cuộc thi và có cơ hội giành được các thiết bị di động.
    THAM GIA CUỘC THI
  • Ferrari từ InstaForex
    Nạp tiền vào tài khoản của bạn với ít nhất 1.000
    tham gia cuộc thi và giành chiến thắng Ferrari
    F8 Tributo
    THAM GIA CUỘC THI
  • Tiền gửi lần truy cập
    Gửi vào tài khoản của bạn 3.000 đô la và giành được 1.000 đô la
    THAM GIA CUỘC THI
  • 100% tiền thưởng
    Cơ hội duy nhất của bạn để nhận 100% tiền thưởng khi gửi tiền
    NHẬN THƯỞNG
  • 55% Tiền thưởng
    Đăng ký tiền thưởng 55% cho mỗi lần gửi tiền của bạn
    NHẬN THƯỞNG
  • 30% tiền thưởng
    Nhận 30% tiền thưởng mỗi khi bạn nạp tiền vào tài khoản của mình
    NHẬN THƯỞNG
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.