- Bitcoin prices ranging with clear supports at $3,400-500 zone
- JP Morgan and Chase rolls out a stable coin, JPM
- Transactional volumes average 10k, not enough to trigger buyers into action
With the release of a banker’s stable coin, JPM Coin, crypto is technically valid. As such, we expect more bankers to follow suit endorsing the tech. That may help resuscitate Bitcoin (BTC) prices and lift them above $3,800 complete with high market participation.
Bitcoin (BTC) Price Analysis
Eventually, everybody does go down the endless rabbit hole call crypto. Many no-coiners are back, retracting their earlier comments and finding a corner in the ever-accommodating crypto ship. The technology is still in shallow waters, the journey promises to be extended (if not turbulent), and JPM Coin is the latest stable coin soldier to join the ranks.
It got many by surprise and as Jamie Dimon’s bank finally realizes that the underpinning tech is here to stay. The announcement is also an endorsement to crypto and their realization that re-adjustment of their business model is the only way for them to maintain and rebuff competition.
Ordinary traders won’t use the coin as JPM will specifically find use in bank-to-bank settlements. All the same, the entry of big businesses like JP Morgan is a big plus, legitimizing everything that crypto holders have always insisted on—speed, efficiency, and control.
BTC/USD Price Analysis
Still, Bitcoin (BTC) prices are flip-flopping, and even with a defined short-term trend, buyers cannot muster enough momentum. Towing in line with all our last BTC/USD price analysis is the need for market participation. A simple glance into the volumes charts and it is clear that something is lacking. Firstly, note that the failure of prices to inch higher is due to shrinking volumes.
Compared to mid-Dec 2018 highs of around 30k, recent averages are wallowing at about 10k. That’s a 66 percent decrease and a significant cause for this horizontal accumulation inside Feb 8 high low. Technically, prices are trading inside a double bar bull reversal pattern within a larger bear breakout pattern with resistance at $6,000.
Triggers are at $3,800, $120 away from current rates. Therefore, even if we are net bullish, we need to see a shift in momentum and consequent confirmation of our bullish stance as prices rally above $3,800.
Volumes are low, and as aforementioned, it has been negative sloping over the last 50 days or so. Because of low averages—around 10k, prices are in range mode, and for validation of our immediate triggers, bulls must thrust prices above $3,800 with high volumes exceeding 32k of Feb 8.
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* First published on newsbtc.com