Crucial Bitcoin Signal That Formed Prior to $2,000 Crash Returns

Crucial Bitcoin Signal That Formed Prior to $2,000 Crash Returns

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Bitcoin has undergone a strong rally over the past 10 days, moving from $10,400 to a high near $11,750. As of this article’s writing, the BTCUSD from TradingView.com

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Not the Only Short-Term Bear

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. JP Morgan strategists noted that the cryptocurrency faces some headwinds as it begins to trade above its intrinsic value. The JP Morgan team has been covering crypto for years now.

The company added that there is seemingly an overhang of net long positions on crypto futures platforms, which may suggest that the market is overleveraged to the upside. This means that there is a potential that the market will move in favor of shorts to reset this positioning, thus avoiding overleveraging by long holders.

“The JPMorgan strategists said they calculated an intrinsic value by effectively treating Bitcoin as a commodity and looking at the marginal cost of production.”

JPMorgan Strategists See ‘Modest’ Headwind for Bitcoin Price

Chart of BTC's price action since the start of 2017 with an instrinsic value analysis by JP Morgan analysts.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Crucial Bitcoin Signal That Formed Prior to $2,000 Crash Returns