Bitcoin (BTC) Price Prediction: JPMorgan Predicts Bullish Rebound in August, Despite Intense Correction

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.

Banking giant JPMorgan has released a new research report that predicts a bullish rebound for Bitcoin in August. The report highlights several key points that indicate a positive outlook for the cryptocurrency.

Firstly, JPMorgan expects the wave of crypto liquidations that have plagued the market to subside this month. This will provide much-needed relief to the market and allow cryptocurrencies to begin recovering from the recent downturn.

Secondly, 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 and paints a more accurate picture of the current market conditions.

According to JPMorgan, its prior estimate of $12 billion was overly optimistic given the circumstances. It points out that Bitcoin’s price was way higher than its production cost and even the price of gold, making the $12 billion figure unrealistic.

However, the $8 billion estimate reflects a more grounded approach to understanding Bitcoin’s market. At press time, BTC was valued at $57,290, a significant decrease from its March all-time high of $73,737.

Despite the positive outlook, technical analysis of Bitcoin on the 4-hour chart shows a bearish trend. The cryptocurrency has seen an equal count of double top and double bottom patterns over the past month, indicating that the bulls and the bears have an equal chance at taking over.

But none has for now. The OBV Oscillator shows a negative value, which means 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.

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