April 12, 2024

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JP Morgan says Bitcoin (BTC) remains overbought in the halving despite the recent correction

JP Morgan says Bitcoin (BTC) remains overbought in the halving despite the recent correction

Cryptocurrency markets have suffered from Sharp correction Last week with the price of Bitcoin (btc) It fell more than 15% before rebounding after the Federal Open Market Committee (FOMC) meeting on Wednesday. JP Morgan (JPM) said in a research report on Thursday that the sell-off may not end as positions still appear overbought.

“There remains significant market optimism about the potential for prices to rise significantly by the end of the year, with a large element of this optimism arising from the view that demand for Bitcoin through spot exchange-traded funds (ETFs) will continue at the same pace until” As the supply of Bitcoin declines after the halving event,” analysts led by Nikolaos Panigirzoglou wrote.

However, the bank notes that the pace of net inflows into spot Bitcoin ETFs has slowed significantly, with a significant outflow recorded last week.

“This challenges the idea that the spot flow profile of a Bitcoin ETF would be characterized as a sustained net flow in one direction,” the authors wrote.

“Indeed, as we approach the halving event, profit taking is likely to continue, especially against the backdrop of positioning that still appears overbought despite last week’s correction,” the report said.

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