Bitcoin to Hit $25,000 at GBTC Unlocking: JP Morgan
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Despite having recovered decently from its recent crash, JP Morgan strategists believe that Bitcoin (BTC) still has a bearish gap to fill. In their latest memo detailing the performance of Bitcoin, the strategists highlighted the upcoming GBTC unlocking as a bearish event for BTC and that it could send the cryptocurrency to $25,000.
The JPM strategists continue to put forward erratic predictions for the primary cryptocurrency. They have gone from predicting a six-digit price tag for BTC by the end of the year to several apocalyptic scenarios.
However, they have remained consistent in their predictions about the role of Grayscale in Bitcoin. Earlier this year, the strategists warned that Bitcoin could suffer a significant correction due to a decline in investment inflows into the Grayscale Bitcoin Trust.
Reports show that institutional investors using Grayscale services will gain access to 16,000 BTC by July 18. There would also be subsequent substantial unlockings at other dates of the month.
After six months of having their assets locked in the Grayscale Trust and the current appreciation in BTC, some investors could decide to cash out profits. JPM strategists argue that this could increase market volatility and renew sell pressure.
That said, other analysts have objected that the JPM $25k prediction is unlikely, considering that Bitcoin has hit its bottom in the bear run.
Key Bitcoin Levels to Watch — June 24
BTC posted a decent recovery yesterday from its recent crash to the $28,800 low. However, bulls could not muster the strength to send the cryptocurrency over the $35k resistance, which sent Bitcoin on a mild correction to the $32k area. At press time, BTC trades at $33,165 as bulls prepare to re-attempt the $35k resistance.
A break above the $35k level should set BTC on a healthier recovery path towards $40k and higher. On the flip side, every decline should get repelled by the $31k pivot line.
Meanwhile, our resistance levels are at $33,750, $35,000, and $36,000, and our key support levels are at $32,000, $31,000, and $30,000.
Total Market Capitalization: $1.34 trillion
Bitcoin Market Capitalization: $619.9 billion
Bitcoin Dominance: 46.4%
Market Rank: #1
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