In these days of lateralization, there are many predictions on the price of bitcoin for 2021.
One of them, made by analysts at JPMorgan Chase, was actually also reported on Bloomberg.
According to JPMorgan Chase’s team of analysts, in the coming days bitcoin could be affected by a possible exodus of investors who follow trends, unless the price manages to get back above $40,000 soon.
In other words, there is a threshold that needs to be crossed in order for sentiment to remain positive, so that further growth is possible.
If not, a significant price decline is possible.
JP Morgan’s downward price prediction for Bitcoin
JPMorgan Chase analysts wrote in a note that BTC inflows into the Grayscale Bitcoin Trust would have to sustain a pace of $100 million per day over the next few weeks if the threshold is to be crossed, as purchases by Grayscale’s customers and BTC price futures contracts would be driving this trend.
In the event that the $40,000 threshold is not crossed, analysts expect the BTC price to fall below its 50-day moving average, to around $25,000.
This drop, should it occur, could be triggered by trend-following traders, who:
“could propagate the past week’s correction”.
Furthermore, Bloomberg writes:
“The cryptocurrency boom since March has reflected the ebullience of financial markets awash in stimulus — as well as concern over whether gains will ultimately prove fleeting”.
This scenario described by JPMorgan Chase seems to be decidedly bearish, while in reality sentiment in crypto markets still seems to be bullish.
“INSANE!!! BITCOIN $115.212 TARGET IN AUGUST 2021”.
This projection was actually based on bitcoin’s stock-to-flow model, which is gaining more and more supporters as it has recently provided fairly accurate indications of likely price movements.
However, the current phase of lateralization still remains shrouded in uncertainty, as there is no agreement at all between the predictions of the various analysts.