- Bitcoin’s value dropped 9% over the past week, trading at $65,472.
- JPMorgan analysts label Bitcoin as “overbought,” suggesting potential for further price decline.
- Experts predict Bitcoin could fall to $42,000 post-halving due to miner costs.
Bitcoin’s characteristic fluctuation over the previous seven days was highly evident, catapulting it again into the limelight. During this period, Bitcoin’s
Even with a modest rebound this week, Bitcoin remains in what is considered “overbought territory” by market analysts at JPMorgan, who suggest that Bitcoin’s price could potentially experience a further decrease.
Two specific metrics, JPMorgan’s proxies for futures positions and the gap between Bitcoin futures and spot prices, suggest that Bitcoin is still being overbought, as per a report from a team led by Nikolaos Panigirtzoglou on Thursday.
Likelihood of Continued Profit-Taking
According to the specialists, the data indicates only a slight unwinding of positions thus far. They note that despite the significant price drop witnessed in the past week, both metrics point to Bitcoin remaining in an overbought state.
While the market has been optimistic about Bitcoin’s price rising by the end of the year, driven by expectations of sustained demand through spot ETFs and a reduced Bitcoin supply following the halving event, recent statistics show a slowdown in net inflows to spot Bitcoin ETFs. This contradicts the notion of a steady influx of capital into spot ETFs, as observed by JPMorgan’s analysts.
The analysts added:
“In fact, as we approach the halving event, this profit-taking is more likely to continue, particularly against a positioning backdrop that still looks overbought despite the past week’s correction.”
Additionally, last week, experts predicted that the cost of bitcoin is likely to drop to around $42,000 following the halving, as a result of reduced payments to miners and higher production expenses.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
