JPMORGAN WARNS: There's a 'fairly high risk' bitcoin could get cut in half
- Bitcoin is trading down more than 35% since the beginning of 2018.
- Technical analysts at JPMorgan see a "fairly high risk" of bitcoin dropping to $4,605 a coin.
Bitcoin has had a rough start to 2018, but things may get even worse before they get better.
Bitcoin gripped the attention of Wall Street and Main Street as it soared to an all-time high close to $20,000 in mid-December. Investor anxieties about a frothy market, cryptocurrency hacks, and the potential of a regulatory crackdown in some Asian countries have since dragged the entire market for digital coins to half of its peak worth.Now, conditions may be forming for a sell-off towards $4,605, according to chart-readers at JPMorgan. That would be a nearly 50% decline from its current price of $8,682 a coin.
"The question is whether we go there straight away, indicated on a failure to clear 10128 and 10776, or at a later stage after a stronger countertrend rally," technical analysts at the bank wrote in a note to clients on Friday.
"Above 10776 though, the door for a broader countertrend rally to 14334 if not to 16304 (76.4% on different scales) would be wide open," the bank concluded.
Bitcoin hasn't traded in that range since early January, according to CoinMarketCap data.
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