JPMorgan says Bitcoin will make a bullish comeback in August

JPMorgan has released a research report predicting that Bitcoin is set for a bullish rebound in August. Despite the intense correction, the banking giant sees light at the end of the tunnel.

One of the key points in JPMorgan’s report is that the wave of crypto liquidations that has plagued the market is expected to subside this month.

The bank has revised its year-to-date crypto net flow estimate from $12 billion down to $8 billion. This adjustment is based on recent trends and data, painting a more accurate picture of the current market conditions.

It admitted that its the 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 worth $57,290, which is a huge decrease from its March all-time high of $73,737.

Bitcoin has seen an equal equal count of double top and double bottom patterns over the past month, meaning the bulls and the bears have an equal chance at taking over. But none has for now.

The OBV Oscillator shows a negative value, meaning 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 yet another clear bearish signal.

Also, the RSI is below the neutral level, sitting at 36.69. The technical indicators point 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 tells 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.