Bitcoin News; JPMorgan strategists have warned that it will be a difficult process for Bitcoin to recover and recover in the short term. In a note, JPMorgan analysts say that not only Bitcoin, but also other crypto elements are at the beginning of the recovery process.
Bitcoin‘s volatility between $30,000 and $34,000 over the weekend seems to reinforce the narrative of short-term uncertainty. This volatile trend also confirms JPMorgan strategists’ conviction that the cryptocurrency market is not yet healthy and needs time to recover.
A Friday note by the JPMorgan Chase team suggested that short-term recovery for Bitcoin still appears to be a challenging process. Based on the data on “on-chain” data, JPMorgan strategists said it was “probably a remnant of “underwater positions” in the market that still need to be cleared.
Can Bitcoin recover in the short term?
JPMorgan cites the stability of the Bitcoin futures market and the possibility of increased production costs as miners migrate from China as positive factors. Some analysis shows that Bitcoin’s cost of production has historically been tied to its price. Therefore, a price increase in the cost of mining can have a reinforcing effect on the Bitcoin price.
The JPMorgan note shows that the cryptocurrency market appears to be at the beginning of its recovery, but is not quite healthy yet. According to Bloomberg, Fundstrat’s David Grider suggested reducing the risk or buying some protection. Following the JPMorgan note came a bounce from $30,000, which is seen as a critical support level in Bitcoin price. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin price dropped as low as $30,070 over the weekend before quickly recovering to $33,445.
Over the weekend, a positive statement for the largest cryptocurrency came from Ricardo Salinas Pliego, Mexico’s third richest man, who named Bitcoin the new gold. As of Monday morning, the price climbed above 35,000.