Bitcoin Still Overbought Despite Recent Correction – JPMorgan
Bitcoin experienced a notable downturn last week, followed by a rebound this week; however, analysts from JPMorgan suggest that it remains in an "overbought" state, implying potential further decline for the leading cryptocurrency.
In a note penned by JPMorgan analysts, led by Nikolaos Panigirtzoglou, it was highlighted that two metrics—JPMorgan’s futures position proxies and the Bitcoin futures price premium over the spot—indicate the ongoing overbought condition of Bitcoin.
Despite a slight unwinding of positions, these metrics signal that Bitcoin remains in overbought territory post the recent correction, as per the analysts’ assessment.
Although there’s optimism regarding Bitcoin’s year-end price surge, driven by expectations of sustained demand through spot ETFs, recent data suggests a slowdown in net inflows into these ETFs, challenging the notion of an uninterrupted influx of funds.
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With profit-taking anticipated to persist, particularly amidst an overbought positioning backdrop, the analysts anticipate continued downward pressure, especially as the halving event approaches.
Earlier predictions from the analysts suggested a potential drop in Bitcoin’s price to approximately $42,000 post-halving, citing factors such as reduced miner rewards and increased production costs.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
