Important facts:
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For JPMorgan, Bitcoin remains “overbought.”
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The company says that profit booking may continue for about the next one month.
The largest US multinational bank, JPMorgan, says that Bitcoin (BTC) still does not look ready to return to growth. Its analysts, led by global market strategist Nikolaos Panigiratzoglou, said this in a note sent to the press.
coin it It is trading 10% below the all-time high (ATH) price reached last week Approximately $73,700 (USD). Reaching this level was partly driven by sustained demand for a Bitcoin exchange-traded fund (ETF) launched two months ago in the United States. But, a change in this scenario leads to regression.
“The pace of net inflows into spot Bitcoin ETFs has slowed significantly, with significant outflows so far this week.” he pointed From JP Morgan. they mention it denotes taking advantage The increase in price (measured in dollars) that a currency experiences.
In fact, as seen below, Such Bitcoin Investment Products Recorded Their Largest Outflows This Week of its history, And if they also close in the red this Friday, it will be the first time they have experienced five consecutive days of departures.
“This challenges the assumption that the Bitcoin spot ETF flow picture will be portrayed as a continuous unidirectional net flow,” analysts at the bank commented.
According to JPMorgan strategists, “As we approach the halving, this profit-taking is more likely to continue, especially in the context of a situation that still appears overbought despite last week’s correction.” “
Bitcoin price starts falling in the days near halving
Historically, in the days near the halving, the price of Bitcoin has declined due to profit-booking amid an uptrend. The event, which halves BTC issuance every four years, has its next date in April 2024.
Analysts, such as Miles Deutscher, have warned, as reported by CryptoNoticias. Price must fall after bullish activity To maintain growth. In this sense, they expect this correction period to be temporary as a test of support.
“It is time to wait a while until the purchasing power of US institutions and whales increases,” an analysis shared by on-chain cryptocurrency data company CryptoQuant indicates. It believes that, given optimistic macroeconomic data, the market will rise again before mid-2024 with more capital purchases.
