Sheldon McIntyre, CMT
Independent Analyst
- Bitcoin price bounces from early lows, seeks to push above the upper resistance line of a falling wedge pattern.
- BTC recaptures the neckline of a larger head-and-shoulders pattern, prepping it for higher prices.
- JPMorgan gives greenlight to financial advisors to expand crypto trading beyond ultra-wealthy clients.
Bitcoin price reaches a technical inflection point as it builds on the upside momentum initiated yesterday and is supported by the breaking JPMorgan news. A release from the falling wedge pattern will provoke sizeable gains for BTC investors.
JPMorgan targets new service to grow wealth management business
In response to the growing interest in cryptocurrency investing, JPMorgan, a titan of wealth management, has expanded cryptocurrency trading beyond ultra-wealthy clients to all of its wealth management clients. As a result, it becomes the first major financial institution to expand cryptocurrency services to retail clients.
The expansion of the service will apply to all JPMorgan wealth management clients that request unsolicited crypto trades for five cryptocurrency products effective July 19. The clients are those looking for investment advice, including the ones who use the Chase trading app. The range of cryptocurrency products is four funds from Grayscale Investments, including the Bitcoin Trust, Ethereum Trust and the Osprey Funds’ Bitcoin Trust.
It is a milestone for the bank’s digital asset services and marks a departure from Jamie Dimon’s negative comments about Bitcoin in May. He said he was not a “bitcoin supporter” and that he “didn’t care about bitcoin.”
Nevertheless, clients are interested in cryptocurrencies and want access to investment vehicles dedicated to the new asset class, according to Mary Callahan Erdoes, JPMorgan’s Director of Asset and Wealth Management.
It is our job to help them put their money where they want to invest.
Financial rivals like Goldman Sachs, Morgan Stanley and Bank of America have not provided retail customers direct access to cryptocurrencies, thereby putting JPMorgan in a prime position to grow their wealth management business.
Bitcoin price builds on yesterday’s upside momentum
Since the May crash, Bitcoin price has been forming a falling wedge pattern, highlighting a decrease in downside momentum and proposing a bullish outlook for the flagship cryptocurrency. Yesterday’s 7.85% advance lifted BTC to the upper resistance line of the falling wedge, and today, the digital asset has followed through on the rally with a fresh test of the line.
Critical to the bullish outlook is a daily close above the upper resistance line, followed by a close above the 50-day simple moving average (SMA) at $34,500. If the breakout becomes impulsive, Bitcoin price could rally to the 38.2% Fibonacci retracement of the April-June correction at $42,589 or even the 200-day SMA at $44,664, logging a 30% gain from the 50-day SMA.
BTC/USD daily chart
A daily close below the neckline of the larger head-and-shoulders pattern at $30,600 would introduce new downside risk and potential for Bitcoin price to test the June 22 low of $28,800 and then the falling wedge’s lower support line at $27,800.
With JPMorgan expanding the cryptocurrency service offerings to retail clients, Bitcoin price will discover a new source of interest and capital to confirm the correction low and drive BTC to new, profitable outcomes for investors.
Here, FXStreet's analysts evaluate where BTC could be heading next as it seems bound for a rebound before capitulation.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?