According to what some JPMorgan experts believe, Bitcoin‘s weekend fluctuation between $30K and $34K seems to have strengthened the short-term setup narrative. They believe that while the cryptocurrency market is heading towards improvement, it is still not what should be considered healthy yet but did acknowledge that there were signs that the market was showing some signs of recovery.
A note released on Friday by the JPMorgan Chase team implied that the short-term setup of the world’s leading virtual currency still seems to be a challenging prospect. In reference to the on-chain information, JPMorgan experts stated that there is a possible extension of “underwater positions” that must be absolved within the market.
The investment company has listed the stability of the BItcoin futures market as well as the likeliness of raised production costs on account of miners’ relocation from China as positive aspects. According to what numerous analyses display, Bitcoin’s production cost is historically linked to its value. Consequently, a price bump in crypto mining costs may end up having an advantageous effect on Bitcoin’s value.
The note points to the fact that the crypto market is apparently at the beginning of its healing process; however, it is not exactly healthy yet. As reported by Bloomberg, David Grider, lead virtual asset strategist at Fundstrat recommended either reducing the risk or ultimately investing in some protection.
According to information from TradingView and Cointelegraph Markets Pro, a bounce off 30K USD, which is viewed as a vital support level, became obvious following the JPMorgan notice. Bitcoin’s value dropped to 30K USD before rapidly bouncing back to 33,445K USD throughout the weekend.
During the weekend, a positive statement for the leading cryptocurrency was observed when Mexico’s third-wealthiest man, Ricardo Salinas Pliego, deemed Bitcoin the new gold. That piece of news may have helped Bitcoin’s price surge above $35K since Monday.