JPMorgan Predicts Bitcoin (BTC) Is Set for a Bullish Rebound in August

Despite the intense correction, the banking giant sees light at the end of the tunnel.

Banking giant JPMorgan has predicted in its latest research report that the flagship cryptocurrency Bitcoin (BTC) is gearing up for a bullish rebound in August. Despite the massive correction, the bank sees a light at the end of the tunnel.

One of the key highlights in JPMorgan’s report is that the wave of crypto liquidations that has plagued the market is expected to come to an end this month.

The bank has also revised its year-to-date crypto net flow estimate from $12 billion down to $8 billion. This adjustment is being made in accordance with the recent trends and data, to paint a more accurate picture of the current market conditions.

The bank admitted that its prior estimate of $12 billion was overly optimistic given the circumstances, pointing out that Bitcoin’s price was way higher than its production cost and even the price of gold, making $12 billion unrealistic.

The $8 billion, however, reflects a more grounded approach to understanding Bitcoin’s market. At press time, BTC was valued at $57,290, which marks a significant drop from its March all-time high of $73,737.

Bitcoin has seen an equal count of double top and double bottom patterns over the past month, indicating that the bulls and the bears both had an equal chance at taking over the market. However, none of them have been able to do so yet.

The OBV Oscillator shows a negative value, indicating that the selling pressure is stronger than the buying pressure. The MACD line is below the signal line, and both are in negative territory, which is another clear bearish signal.

Furthermore, the RSI is below the neutral level, sitting at 36.69. Taken together, the technical indicators are pointing to a continued bearish trend. If the price fails to break above the immediate resistance level at $60,000, we might see further declines towards the support level at $53,000.

The strong negative OBV and MACD are telling us that selling pressure remains high, making it likely for the price to test lower support levels. For a bullish reversal, BTC needs to break above the $60,000 resistance level and sustain above it.

A bullish crossover in the MACD and an increase in the RSI towards the neutral level would be necessary to confirm a spike. If buying volume increases a lot, we might see a test of the upper Fibonacci band around $76,000.

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