According to several major Wall Street analysts, “the cryptocurrency market has found a floor.”

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(Kitco News) — There has been an interesting narrative change around the Bitcoin (BTC) and cryptocurrency market from some of the biggest players in the financial markets over the past week amid rising token prices.

In a note to clients on Monday, JPMorgan analyst Kenneth Worthington noted that “it appears that the crypto markets have found ground” with prices rebounding in July thanks to “the postponement of the correction in token prices that has persisted since crypto market prices peaked in November 2021.”

And it’s not just analysts at JPMorgan who see the tide turning in the cryptocurrency market, as Mike McGlone, chief commodity strategist at Bloomberg, sees a more positive future for the cryptocurrency market in the coming months.

During a recent interview with McGlone, the analyst noted that Bitcoin is more likely to turn into a “risk-free asset like bonds and gold and less risky assets like the stock market” in the second half of 2022.

According to McGlone, the speculative excesses of the 2021 bull run have now been cleared, and the market is ready for a new high.

Bitcoin’s rally above $24,000 on Monday has triggered market participants to call for the start of a new bullish cycle. The move could be a reaction to the triggering of short stop-loss orders and forced sell-covering, according to David Lifchitz, chief investment officer at ExoAlpha.

Lifchitz noted that another potential source of this latest rally is “hidden regression buyers” who sometimes launch “small short-pressure meltdowns since the June 18 low at $17,593.” There have been four such waves since June 18, with each wave “higher bottom than the previous wave, which is constructive”.

Btc/usd 1 day chart. Source: TradingView

Looking ahead, Lifchitz cited the key resistance levels at $24,700 and $26,000 as important areas to watch but admitted that “what happens from there is anyone’s guess.”

One wildcard to watch, according to Lifchitz, is Wednesday’s US CPI report, focusing more on the details rather than the headline “as food prices are expected to continue rising while energy prices may ease a bit, Possibly leading to a “moderate” title level.

“If people can’t buy food, that’s a problem…it could cause the Fed to keep raising rates for longer than the market expects, which could put some cold water on price action sooner rather than later,” Lifchitz stated.

As for the worst-case scenario, Lifchitz suggested that “any pullback should not break the $18,000 bottom for BTC.”

Disclaimer: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

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