JPMorgan: Bitcoin still in overbought territory, could drop to 42K
According to a report by The Block, analysts at JPMorgan Chase believe that despite the recent correction in Bitcoin prices over the past week, it is still in the "overbought territory." Bitcoin may correct to $42,000.
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Last week, Bitcoin retraced from its all-time high of 73,777 to a low of 60,775, marking a 17% pullback. However, analysts at JPMorgan believe that based on their futures positioning and the Bitcoin futures/premium indicator, Bitcoin is still in an "overbought zone." Despite significant price adjustments over the past week, there has been only a slight reduction in positions.
The report also mentioned a slowdown in inflows into Bitcoin spot ETFs, challenging the belief in the continuous inflow of funds into spot ETFs.
As the halving event approaches, this profit-taking situation is likely to continue.
According to reports earlier this month, JPMorgan believes that after the halving, due to reduced rewards and rising production costs, miners' profits will be negatively impacted, and the price of Bitcoin could fall to around $42,000. Furthermore, considering risks and volatility factors, Bitcoin's market value is unlikely to catch up with gold.
JPMorgan: Bitcoin to retrace to $42,000 after halving in April
JPMorgan: Bitcoin price should be $45,000, market value catching up with gold is unreasonable