Bitcoin (BTC) has lost key support levels over the past 24 hours amid waning sentiment
Bitcoin’s recent decline, according to JPMorgan Chase, has left the digital token significantly below its fair price, giving the lead asset “significant upside” for the future.
At a price of $28,948, Bitcoin presents a “significant upside” of almost 28% based on its fair value given by the bank. JP Morgan had estimated Bitcoin’s fair value at 38,000, suggesting it may be undervalued at current prices.
Despite the recent market dip that saw Bitcoin reenter the $28,000 range, the bank has maintained a positive outlook. “The past month’s crypto market correction looks more like capitulation relative to last January/February, and going forward, we see upside for Bitcoin and crypto markets more generally,” J.P. Morgan strategist Nikolaos Panigirtzoglou indicated.
Bitcoin Price Action
Bitcoin (BTC) has lost key support levels over the past 24 hours amid waning sentiment in the broader crypto market, resulting in around $383 million in liquidations, according to data from Coinglass.
On Thursday, the cryptomarket sell-off accelerated, with Bitcoin (BTC) falling to a low of $28,003 before slightly rebounding, setting the tone for other major cryptocurrencies. Alternative cryptocurrencies, also known as altcoins, were hammered particularly hard, with huge losses.
The price of Bitcoin fell despite the favorable performance of US stock indices on Wednesday. Following the release of the minutes of the US Federal Reserve meeting on May 3-4, stocks rose slightly. According to the minutes, the agency was willing to be flexible with rate hikes and monetary tightening policies. Markets feared the Fed was taking an “aggressive” stance, which Federal Reserve Chairman Jerome Powell had previously said.
Overall, the crypto market has dropped 4.13% to $1.20 trillion in the last 24 hours, as Bitcoin and other altcoins have been unable to recoup the earlier day’s losses as of publication. At the time of publication, Bitcoin and Ethereum remained down both on a daily and weekly basis.
