Crypto Industry News:
JPMorgan Chase saw the benefits of adding a small percentage of Bitcoin to a wallet with multiple assets. The company's global head of research, Joyce Chang, and vice president of strategic research, Amy Ho, wrote in a letter to customers:
"In a portfolio with multiple assets, investors can likely add up to 1% of their cryptocurrency allocations to achieve any performance gain in the portfolio's overall risk-adjusted returns.
However, strategists explained: "Cryptocurrencies are investment tools, not funding currencies. Therefore, we recommend hedging with financing currencies such as the yen or the US dollar to hedge a macro event.
While many analysts believe Bitcoin is a way to hedge against significant fluctuations in traditional asset classes including stocks, bonds, and commodities, JPMorgan has doubts. Last week, an investment bank said Bitcoin was "an economic showcase," adding:
"Crypto assets continue to be the worst hedge against large drops in stocks, with the dubious benefits of diversification at prices well above production costs, while correlations with cyclical assets are increasing as cryptocurrency ownership is mainstreamed," the company said.
Technical Market Outlook:
The BTC/USD pair has bounced from the low seen at the level of $43,121, broke above the short-term trend line resistance and made a new local high at the level of $50,126. The next target for bulls is seen at the level of $52,036, but before this level is hit, the next most important target for bulls is the overbalance level located at $50,265. As long as the market trades below the overbalance level, the correction might develop. The intraday technical support is located at $48,021.
Weekly Pivot Points:
WR3 - $66,669
WR2 - $61,820
WR1 - $52,326
Weekly Pivot - $47,444
WS1 - $38,017
WS2 - $33,139
WS3 - $23,184
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $60,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken.