Current price trend as a weakening signal

In the last 24 hours the price action of much of the cryptocurrency market has been in steep decline, with Bitcoin dropping to the $26,000 area and showing signs of falling further, which is certainly a clear sign of weakening.

The truth is that "The recent downtrend in the cryptocurrency market seems to be coming to an end, as the latest research from JPMorgan suggests that most of the liquidations of long positions have been completed" said columnist Ana Paula Pereira in her latest article socialised on the Cointelegraph portal.

The article also mentioned that "According to a Bloomberg report, analysts at the US bank estimate that liquidations "are mostly behind us". The prediction is based on open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange (CME), indicating that the selling trend may soon slow".

It also highlighted that "The decline in Bitcoin's open interest is interpreted as a sign that the current price trend could be weakening, according to analysts. "As a result, we see limited downside risk for cryptocurrency markets in the near term."

In my modest view, what has been happening with the price action of most cryptocurrencies shows that we are in an accumulation zone that will allow the market to catch some oxygen before the halving of Bitcoin occurs.

Cointelegraph. JPMorgan forecasts limited downside for crypto markets: Report.

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