JPMorgan: Bitcoin Remains in Overbought Territory, Potential Correction to $42K
According to a report by The Block, analysts from JPMorgan believe that despite a correction in the price of Bitcoin over the past week, it is still in an “overbought zone”. Bitcoin may correct to $42,000.
Bitcoin retraced from its all-time high of $73,777 last week, reaching a low of $60,775, a pullback of up to 17%. However, JPMorgan analysts believe that based on their futures positions and the Bitcoin futures/premium indicator, Bitcoin is still in an “overbought zone”. Despite significant price adjustments in the past week, there have only been minor closings based on positions.
The report also mentioned the recent slowdown in inflows to Bitcoin spot ETFs, challenging the belief of continuous one-way inflows into spot ETFs.
With the halving event approaching, this profit-taking situation is more likely to continue.
According to a report earlier this month, JPMorgan believes that after the halving, the decrease in rewards and the increase in production costs will have a negative impact on miners’ profits, and the price of Bitcoin may fall to around $42,000. Moreover, considering factors such as risk and volatility, it is also unlikely for the market value of Bitcoin to surpass that of gold.
(JPMorgan: Bitcoin to correct to $42,000 after halving in April)
(JPMorgan: Bitcoin price should be $45,000, market value surpassing gold is unreasonable)
JPMorgan
Bitcoin
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