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Highlights
- Bitcoin stages sharp recovery of 8% from daily low of $50,000 leading to short liquidations.
- JPMorgan said that the we're getting closer to buy-the-dip opportunities in the near future.
- Michael Saylor says he continues to HODL his Bitcoins despite today's rout.
Amid the global market collapse across asset classes, banking giant JPMorgan said that we’re getting closer to a buy-the-dip opportunity in the market. After tanking under $50,000 for the second time in a day, the Bitcoin price has once again bounced back above $54,000 in a quick recovery leading to some short liquidations in the past hour.
JPMorgan Says Buy the Dips
As the selloff in the global markets intensified on Monday, the JPMorgan trading desk shows that the rotation in the tech sector is almost done and that the market is very close to offering a “tactical” buy-the-dip opportunity.
With the Nasdaq sinking by 5% in the early trading hours on Monday, the calls of a possible Fed emergency meeting took the tall. It will be interesting to see whether the Fed intervenes in this market turmoil by announcing a 50 basis points rate cut much before September.
However, the volatility index has surged significantly to above 50 levels, last seen during the COVID-19 pandemic crash of April 2020. John Schlegel, JPMorgan’s head of positioning intelligence, said:
“Overall, we think we’re getting close to a tactical opportunity to buy-the-dip and our Tactical Positioning Monitor could dip further in the next few days. That said, whether we get a strong bounce or not could depend on future macro data.”
Also Read: Chicago Fed President Signals Emergency Rate Cut, Slashes Recession Concerns
Bitcoin Short Liquidations
After slipping under $50,000 twice in the past 12 hours, the Bitcoin price has bounced back considerably gaining 8% from the bottom levels. As per the data from Coinglass, more than $40 million in Bitcoin short positions got liquidated in the last hour amid this strong reversal. The total short liquidations across the crypto market have now surged to $57 million.
Interestingly, this reversal happened soon as Microstrategy chairman Michael Saylor said that he is continuing to HODL his Bitcoins with diamond hands.
This shows that despite this crypto market crash top market players continue to show confidence, undeterred by the global market cues. Thus, investors are strongly eyeing buy-the-dip opportunities in the crypto market as well.
However, the crypto market recovery is unlikely to be swift going ahead as analysts say that the Fed rate cut could worsen the market bloodbath.
Also Read: Bitcoin Leads Crypto Outflow With $400M Lost Amid Recession Fears
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