Bittime - The fall in the price of Bitcoin (BTC) in recent times was greeted with caution by the global banking giant, JPMorgan. They reminded that even though the price was corrected, Bitcoin was still in the "overbought" or too high area.
JPMorgan analysts expect the crypto asset's selling pressure to continue as the halving event approaches, "especially against the backdrop of positioning that still looks overbought despite last week's correction."
JPMorgan: Bitcoin (BTC) Still in Overbought Territory
In a note dated Thursday, JPMorgan analysts led by global strategist Nikolaos Panigirtzoglou, warned that Bitcoin is still in “overbought territory” despite its recent price drop. This indicates the potential for a further decline in Bitcoin (BTC) prices .
The analysts explained that they reached that conclusion after examining two metrics: a proxy for JPMorgan's futures position and the price premium of Bitcoin futures contracts compared to spot prices.
"Both metrics show that Bitcoin is still in overbought territory despite a sharp correction over the past week," they said.
Furthermore, JPMorgan warned that the recent slowdown in inflows into Bitcoin exchange-traded funds (ETFs) casts doubt on the market's optimistic predictions of a price increase at the end of the year.
While hopes were high for continued demand fueled by Bitcoin ETFs and the upcoming Bitcoin (BTC) halving event, the latest figures suggest that fund flows into spot ETFs may not be as consistent as some anticipate.
After weeks of increasing inflows, 10 spot Bitcoin ETFs that started trading in early January experienced outflows last week. This comes while Grayscale's (GBTC) Bitcoin investment trust continues to experience significant outflows.
In contrast, nine spot Bitcoin ETFs, excluding Grayscale's GBTC, managed to record an accumulation of $1.3 billion in BTC in just six days.
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Profit-Taking Opportunities Ahead of Bitcoin (BTC) Halving
Regarding the future price of Bitcoin, the JPMorgan analyst added, "Ahead of the halving event, this profit-taking is more likely to continue, especially against the backdrop of positioning that still looks overbought despite last week's correction."
Earlier last month, JPMorgan issued a bearish warning, predicting a drop in the price of Bitcoin (BTC) to $42,000 after the halving event in April. The bank also downplayed the impact of Ethereum's upcoming halving and upgrade, arguing that the market is already pricing in the event.
Earlier this month, Panigirtzoglou stated, "It is unrealistic to expect Bitcoin to match gold in investors' portfolios in nominal terms." Meanwhile, JPMorgan CEO Jamie Dimon remains a crypto skeptic, stating this month, "I personally would never buy Bitcoin."
JPMorgan's Viewpoint on Bitcoin (BTC)
JPMorgan's warning about Bitcoin's "overbought" position needs to be paid close attention to by market players. However, it is important to note that financial institutions' views on crypto are often conservative. The recent plunge in Bitcoin (BTC) prices may reflect a natural market correction after a significant rally in 2021.
Additionally, the predicted price drop to $42,000 post-halving needs to be considered carefully. Bitcoin's historical halving event was actually followed by a significant long-term price increase.
The crypto market is known to be volatile. Investors need to do in-depth research and have a mature investment strategy before entering this realm.
BTC/USDT Bitcoin Price Today
Source: Bittime.com
On March 25, 2024, the price of Bitcoin BTC/USDT was at $66,699 per coin, up 3.70% in 24 hours.
Also Read How to Buy Crypto:
Other Factors to Consider
In addition to JPMorgan's analysis , there are several other factors to consider when looking at Bitcoin's prospects:
1. Market Sentiment
Market sentiment towards Bitcoin is currently still positive. This can be seen from the high level of investor interest in Bitcoin ETFs, despite a slowdown in the last few weeks.
2. Institutional Adoption
Bitcoin adoption by large institutions continues to increase. This can have a positive impact on the price of Bitcoin in the long term.
3. Regulation
Regulatory uncertainty is still one of the factors hindering the growth of the crypto market. However, some countries are starting to show a more open attitude towards Bitcoin and other crypto assets.
4. Technological Development
The development of blockchain technology and decentralized applications (dApps) can encourage the use of Bitcoin and increase its value.
5. Bitcoin (BTC) Halving
Although JPMorgan predicts a decline in prices after the halving, this event may trigger price increases in the long term. Previous halvings have been shown to drive Bitcoin prices significantly higher.
Conclusion
Although JPMorgan warns that Bitcoin (BTC) is still “overbought,” there are several other factors to consider when looking at Bitcoin's prospects. Investors need to conduct in-depth research and have a mature investment strategy before entering this volatile crypto space.
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How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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