Despite last week’s correction, Bitcoin remains in the ‘overbought zone’, according to JPMorgan analysts. Last month, analysts said the Bitcoin price would likely drop to around $42,000 after the upcoming halving. Meanwhile, Glassnode notes that Bitcoin has entered a period of market correction and price volatility.
Bitcoin is in overbought territory, further declines possible!
According to JPMorgan analysts, Bitcoin experienced a sharp correction last week before rebounding this week. However, analysts say it still remains in “overbought territory.” Therefore, it suggests that the leading cryptocurrency will likely fall further. JPMorgan analysts led by Nikolaos Panigirtzoglou note that two metrics show Bitcoin is still overbought. These metrics are JPMorgan’s futures position proxies and the Bitcoin futures price premium over spot.
According to analysts, these metrics indicate only a minor unwinding of positions so far. “Both metrics show that Bitcoin remains in overbought territory despite the sharp correction last week,” analysts say.
Net inflows into spot Bitcoin ETFs are slowing, $42K is on the table!
There is significant optimism in the market that BTC prices will rise by the end of the year, with the expectation that demand will continue through spot ETFs despite the decrease in Bitcoin supply after the halving event. However, recent data shows a slowdown in net inflows into spot Bitcoin ETFs, according to JPMorgan analysts. It also reveals that there is no constant one-way flow of funds into spot ETFs. Analysts make the following assessment:
In fact, as we get closer to the halving event, it’s more likely that this profit-taking will continue, especially against a backdrop of positioning that still appears overbought despite last week’s correction.
Last week, analysts predicted that the BTC price would drop to around $42,000 after the halving. For this, they cited the decrease in miner rewards and the increase in production costs.
Glassnode: Leading cryptocurrency enters volatile corrective period
cryptokoin.comAs you follow from , Bitcoin has experienced a strong rally this year. Crypto analysis firm Glassnode now expects a market correction following this rally. He also predicts that this process will take the form of price fluctuations. The analyst firm says fundamental indicators show Bitcoin is “breathing” as holders sell for profit after BTC surged 175% this year. In this context, Glassnode makes the following statement:
When I look at the overall market structure at these different stages, we shouldn’t be surprised that the market is entering some sort of correction here, even though we don’t know if we’re in the top or not. This makes sense because everyone has enough green in their portfolio that, historically speaking, people started taking profits. We can also see this in the long-term supply of holders, who are actually profiting at a fairly significant rate. Within seven days we saw long-term supply dwindle and realized profits reach an all-time high of $3.5 billion per day.
The firm says two key indicators point to a Bitcoin correction. According to Glassnode, the market cap-to-realized value (MVRV) indicator, which is the ratio of Bitcoin’s market cap to its realized value (the value of all BTC at the price they were purchased), indicates possible overvalued market conditions.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!