Bitcoin is trading down more than 35% since the
beginning of 2018.
Technical analysts at JPMorgan see a “fairly high risk”
of bitcoin dropping to $4,605 a coin.
has had a rough start to 2018, but things may get even worse
before they get better.
While the cryptocurrency avoided the historic selling pressure
that swept much of the markets last week, it is still down more
than 35% year-to-date.
Bitcoin gripped the attention of Wall Street and Main Street as
it soared to an
all-time high close to $20,000 in mid-December. Investor
anxieties about a frothy market, cryptocurrency hacks, and the
potential of a regulatory crackdown in some Asian countries have
since dragged the entire market for digital coins to half of its
Now, conditions may be forming for a sell-off towards $4,605,
according to chart-readers at JPMorgan. That would be a nearly
50% decline from its current price of $8,682 a coin.
“The question is whether we go there straight away, indicated on
a failure to clear 10128 and 10776, or at a later stage after a
stronger countertrend rally,” technical analysts at the bank
wrote in a note to clients on Friday.
Bitcoin’s recovery from a low above $5,900 earlier this month was
“impressive,” according to the bank. Still, JPMorgan sees a
“fairly high risk” of a sell-off towards the $4,605 level if the
digital currency doesn’t break through its resistance level
between $10,128 and $10,776.
“Above 10776 though, the door for a broader countertrend rally to
14334 if not to 16304 (76.4% on different scales) would be wide
open,” the bank concluded.
Bitcoin hasn’t traded above $16,000 since early January 2018,
according to CoinMarketCap