- The price of Bitcoin recovered from its decline below $50,000 and re-broke $54,000.
- The volatility index has dramatically soared to values over 50, last seen in April 2020.
Financial behemoth JPMorgan claimed that a buy-the-dip opportunity is approaching as the world market collapses across asset classes. There have been a few brief liquidations in the last hour as the price of Bitcoin recovered from its decline below $50,000 and re-broke $54,000.
According to the JPMorgan trading desk, the IT sector’s rotation is almost complete. And the market is almost ready to give a “tactical” buy-the-dip chance. As the selloff in global markets deepened on Monday.
Tactical Opportunity
Predictions of an imminent Federal Reserve emergency meeting sent the Nasdaq down by 5% in Monday’s early trading hours. It would be intriguing to see whether the Federal Reserve steps in to calm the markets. By announcing a rate drop of 50 basis points before September.
Having said that, the volatility index has dramatically soared to values over 50, which was last seen during the COVID-19 pandemic meltdown in April 2020.
The head of positioning intelligence at JPMorgan, John Schlegel, stated:
“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.”
Despite falling below $50,000 twice in the last 24 hours, the price of Bitcoin has recovered significantly, rising 8% from its low points. In the previous hour, due to this significant turnaround, more than $40 million worth of Bitcoin short bets were liquidated, according to data from Coinglass. At the time of writing, Bitcoin is trading at $54,029, down 9.80% in the last 24 hours as per data from CMC.
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