Bitcoin (CRYPTO: BTC) is undergoing a major correction if it does not exceed more than $ 60,000 soon, according to JPMorgan strategist Nikolaos Panigirtzoglou.
What happened: Panigirtzoglou-led JPMorgan strategies wrote in a note on Tuesday that Bitcoin’s momentum will collapse if it does not regain $ 60,000 soon.
Panigirtzoglou said that “in recent days, Bitcoin futures markets have experienced a sharp liquidation,” such as last February, mid-January or late November.
The comments followed the 9% correction this Sunday, which, according to some experts, was caused by the news about a power outage in China, which eliminated a considerable part of the network hashrat.
Why does it matter: In the months mentioned above, the momentum of the Bitcoin flow was strong enough to allow the cryptocurrency to recover above key technical levels, which led to impulse traders who consolidated their long positions.
For this reason, the JPMorgan strategist believes that the upward trend will be weakened if Bitcoin does not soon regain the $ 60,000 key.
“Impulse signals will naturally decay from here for a few months, given their still high level,” he wrote.
While Panigirtzoglou acknowledged that it remains to be seen whether this time Bitcoin will recover as it did after the corrections mentioned above, it is less likely because this decline in time momentum seems more advanced and therefore more difficult to reverse.
Price action: Currently, BTC trades below the 50-day moving average around USD 54,204, 5.31% lower in the last twenty-four hours.
See also: Bitcoin could drop to $ 20,000, according to the Guggenheim’s CIO
If the currency does not break this short-term trend line, it could lose another 10% and test the $ 50,000 level.
The next support area would be the 100-day moving average at $ 49,212, 11% lower than Wednesday’s price.
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