Banking Giant JPMorgan Unfazed by Crypto Downturn

A new research report from JPMorgan Chase & Co. indicates that the recent downward spiral in cryptocurrency markets may soon abate.

Nikolaos Panigirtzoglou has pointed to the decline in open interest in CME Bitcoin futures contracts as a sign that the sell-off might be nearing its conclusion.

Open interest—defined as the number of unsettled and active futures contracts trading on exchanges—serves as an indicator of a price trend's momentum. A decline in open interest generally suggests that the price trend is losing steam, thus signaling a limited downside for crypto markets in the near term.

Still in bull territory?  

Notably, JPMorgan's view is in line with that of anonymous cryptocurrency analyst Dave the Wave. In a recent post on X (formerly Twitter), Dave the Wave highlighted that Bitcoin's weekly Moving Average Convergence Divergence (MACD) is still above the zero-line, suggesting the cryptocurrency is still in bull territory. Unlike the steep rise outside of the Low Ground Cover (LGC) buyzone observed in 2019, the current MACD patterns indicate a lower risk of a drastic correction back to the buyzone. Dave the Wave anticipates that the MACD will bounce off the zero-line and maintain its bullish stance.

Lackluster price action 

After spiking to $28,000, Bitcoin's price recently retreated to the $27,000 level, even in light of positive news from Grayscale Investments.

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As reported by U.Today, prominent analyst Mike McGlone recently opined that $30,000 may be the new $12,000 for the largest cryptocurrency. 

Considering that the Fed is still determined to tame inflation, Bitcoin might keep struggling to stage an impressive rally.