JPMorgan, Bitcoin (BTC) It issued a warning that it could face further declines. This warning comes after a recent correction and subsequent recovery in Bitcoin’s value.
In a note published today, a team of analysts led by Nikolaos Panigirtzoglou noted that Bitcoin remains in “overbought territory.” According to the report, this conclusion is based on two key metrics: JPMorgan’s futures position proxies and the Bitcoin futures price premium over the spot price. Both indicators show that Bitcoin is still overbought and there has been only a minor unwinding of positions so far.
The market is significantly optimistic that the Bitcoin price will rise by the end of the year. This optimism was fueled by the expectation that demand would continue through spot ETFs, in addition to the decrease in Bitcoin supply following the halving event.
“In fact, as we get closer to the halving event, it is more likely that this profit-taking will continue, especially against a backdrop of positioning that still appears overbought despite last week’s correction,” analysts said.
Last week, JPMorgan analysts predicted that the Bitcoin price would drop to around $42,000 after the halving.
*This is not investment advice.
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