Bitcoin holds support at $20K as JPMorgan sees “worse than recession” ahead

Bitcoin (BTC) started the week at around $21,100 on Aug 22, after a slight 3% weekend uptick. While the flagship crypto held above $20,000, it confirmed the ‘bear flag’ setup

Charts spell trouble for Bitcoin (BTC)

The bear flag occurs after a decline in the asset price and entails two parallel trendlines taking the value higher.

As evidenced by the name, the bear flag setup forecasts a looming decline equal to the sharp drop preceding it. Thus, the target price for BTC would stand at approximately $12,000.

Recession here to stay?

According to Jamie Dimon, the chief executive of banking giant JPMorgan, “something worse than a recession” might be on its way.

In mid-August, the CEO specified that there is only a 10% chance of an economic slowdown that doesn’t lead to a recession while ominously warning there are 20% to 30% odds of a worse outcome.

BTC prospects bleak as of Q3

The alarming escalation between China and Taiwan could dig a deeper hole in the global economy while Russia tightens the energy chokehold on Europe.

The unstable geopolitical situation could hinder Bitcoin’s recovery attempts unless the latter can decode from risk-on assets.