Bitcoin is gradually coming back, and it is very exciting. We have not gotten rid of the thorns in the bed yet, but it is nice to see a little bit of optimism coming back into the market after everyone was angry and pessimistic.
From the chart above, we can see that Bitcoin is up by 15.5% since the lows of two days ago. It is amazing how fast things change in the cryptocurrency market, but we have to remember that we are not out of the woods yet; even though the market is beginning to look very optimistic,
The strong recovery, the 100-day moving average ended up acting as a bit of support. We have finally bounced up from that, and we are now moving back towards the fifty-day moving average, which is the purple line on the chart. The purple line will be acting as resistance for us around $56,900, and we can expect a bit of resistance coming in for Bitcoin. We need to see Bitcoin closing a daily candle above $57,000, which would put us right above the fifty-day moving average, which has now become our resistance.
Until we cross over the fifty-day moving average, we are still in a bit of a bearing correction phase despite all these big beautiful green candles that we see right now. Until we cross over the fifty-day moving average, we are not back in the bull trend. We are still in a very strong bull market, but the buyers are not in charge of the market.
Regardless of the dips and everything that is going on, Bitcoin is looking strong. These corrections under the fifty-day moving average tend to last for about 12-17 days based on historical data from the 2017 bull run. We have been closing under the fifty-day moving average for eight days straight. The average is about 12 days for these corrections that happen under the fifty-day moving average during the bull run, so we have about 3 to 4 days left before we may cross back, and Bitcoin may probably make a big dramatic move at that point.
On the other hand, JP Morgan has decided that they will be launching a Bitcoin fund. This is dramatic in terms of a complete turnaround for JP Morgan. They will be using the New York Digital Investment Group to do the custody for this Bitcoin fund. Back in 2017, the CEO of JP Morgan came out and said that he would fire any of his employees that he catches trading Bitcoin, calling Bitcoin a bubble and a scam. Now four years later, JP Morgan is launching Bitcoin Fund.
People keep their Bitcoin in different custodial services; some keep their Bitcoin with CoinBase custody services; some keep their Bitcoin with custodial lending services, e.g., BlockFi. But putting your Bitcoin in JP Morgan seems off because Bitcoin was created to destroy banks like JP Morgan, and now JP Morgan is getting in to join the Bitcoin parade.
