US Bank Say Bitcoin (BTC) is a Bubble, Will Price Fall?

Bitcoin (BTC) in range mode
JP Morgan Strategists say current prices echo those of late 2017 and could burst

After analyzing Bitcoin as a commodity, JP Morgan strategists now say there is a divergence between actual and intrinsic values and that Bitcoin echoes the spike of Dec 2017. In their view, the only correction is a drastic reduction in price against analysts projections.

Bitcoin Price Analysis


Analysts believe that the dilapidating winter of last year is over. In six weeks starting from early April, Bitcoin (BTC) prices have been on a roll after clearing the all-important Q1 2019 highs of $4,500. Since then, the path of least resistance is clear, and bulls are in the driving seat. In spite of Bitcoins recent performance, investors as Kevin OLeary and even Warren Buffet are skeptical of Bitcoin.

In a recent discussion, Kevin said Bitcoin is garbage and useless because it has no intrinsic value even when the asset is quickly becoming a choice asset for shielding against inflation, censorship and government intervention like the deliberate devaluation of the Chinese Yuan in response to Trumps move. It is this lack of intrinsic value that a JP Morgan strategist says is the cause of divergence that echoes the development of the last crypto rally of late Dec 2017 and early 2018. While talking to Bloomberg, they said:

Over the past few days, the actual price has moved sharply over marginal cost. The divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time, this divergence was resolved mostly by a reduction in actual prices.

Candlestick Arrangement

Bitcoin is consolidating and inside a $1000 range with limits at $7,500 and $8,500, our buy trigger line. Even though there is a bullish bar revealing demand, risk-averse traders ought to wait for a solid close above the main resistance line at $8,500.

Such a breakout will confirm bulls of early May, and in a trend continuation phase printing after the correction of the over-extension of May 14th and 15th, there is a likelihood that Bitcoin (BTC) may surge towards $10k. Odds of prices rallying to this ideal level are high.

Note that from the chart, it is evident that prices did bounce off the 61.8 percent Fibonacci retracement level of the last leg up driving BTC to $8,500.

Technical Indicator

May 13th bull bar anchors our analysis. Participation is high, plus the bar is wide-ranging. Therefore, any break above $8,500 must be at the back of high transaction levels exceeding averages of 32k and 47k of our anchor bar.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

The post US Bank Say Bitcoin (BTC) is a Bubble, Will Price Fall? appeared first on NewsBTC.

20.05.2019 / 11:30 98
JP Morgan Analyst: Bitcoin (BTC) Trading Above Intrinsic Value JP Morgan Analyst: Bitcoin (BTC)
Analysts at Wall Street investment bank J.P. Morgan Chase believe that the price of Bitcoin has soared above its intrinsic value throughout 2019s
JPMorgan Sees Imminent Bitcoin Price Fall; Why Its Unlikely to Happen JPMorgan Sees Imminent Bitcoin Price
JPMorgan believes a Bitcoin price fall is imminent. According to their analysts, periods when price exceeds intrinsic value have always led to a
JPMorgan Warns Investors Of Overpriced Bitcoin And Potential Crash JPMorgan Warns Investors Of
True to form, JPMorgan strategists have been warning investors off Bitcoin, despite the current bull-market. According to a recent investor note,
Bitcoin Rally To $8,000 Smells Like Late-2017: JP Morgan Analysis Bitcoin Rally To $8,000 Smells Like
Save for Fridays sudden selloff, Bitcoin (BTC) has been on an absolute tear over the past few weeks. Since early-April, the asset has moved from
Shark Tanks Kevin OLeary Calls Bitcoin (BTC) Garbage Shark Tanks Kevin OLeary Calls
One of Shark Tanks most prominent investors has taken aim at Bitcoin and cryptocurrency. Kevin OLeary, who also goes by the nickname Mr. Wonderful on
Bitcoin (BTC) Dominance Jump after Price Spike, Analysts Cautious Bitcoin (BTC) Dominance Jump after
Bitcoin (BTC) up above $6,000 adding 12.4 percent Divergence in volumes despite strong fundamentals Analysts are throwing caution to wind warning
Comments (0)
Add a comment
Comment on