Analysts at JPMorgan doubt that bitcoin's (EXANTE: Bitcoin) recent flash-crash is over. According to JP Morgan strategist Nikolaos Panigirtzoglou, the longer-term signal for bitcoin "remains problematic."
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"The longer-term signal remains problematic, as it has yet to turn short. It would still take price declines to the $26k level before longer-term momentum would signal capitulation."
Panigirtzoglou also recalled that the bank's analysts noted earlier that the failure of bitcoin to rise above the $60,000 mark would see "momentum signals turn mechanically more bearish." He notes that the boom and bust dynamics of the past weeks represent "a setback to the institutional adoption of crypto markets."
In the meantime, the fees for processing transactions on the Bitcoin and Ethereum networks reached a six-month low amid declining market activity. Last April, the average fee on the Bitcoin network rose to an all-time high of $62.78. However, it now stands at just $7.27 after falling 90% in six weeks.
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