Bitcoin remains overbought despite recent correction, JPMorgan analysts say in a new report reported by Coindesk. The pace of net inflows into spot bitcoin ETFs has slowed significantly, with a significant outflow last week, the report said.

“Bitcoin sales wave not over”

Crypto markets have undergone a sharp correction over the past week, with the bitcoin price correcting by over 15% before recovering following the Federal Open Market Committee (FOMC) meeting on Wednesday. The selloff may not be over yet as positioning still looks overbought, according to JPMorgan (JPM) analysis.

“There is optimism in the market that prices will rise significantly by the end of the year. That optimism comes from the idea that demand for bitcoin through spot exchange-traded funds (ETFs) will continue at the same pace. Even if the supply of bitcoin decreases after the halving event,” write analysts led by Nikolaos Panigirtzoglou.

The four-yearly halving is the moment when the rewards for miners are cut in half. The next halving is expected in mid-April. However, the bank notes that the pace of net inflows into spot bitcoin ETFs has slowed significantly, with significant outflows observed over the past week.

“This challenges the notion that the flow picture of spot bitcoin ETFs is characterized as persistent unidirectional net inflows,” the authors write. “In fact, as we approach the halving, it is more likely that this profit-taking will continue, especially against a positioning backdrop that still looks overbought despite last week’s correction,” the report said.

Danger zone

What are other analysts saying on X? According to Rekt Capital, the price is still in a pre-halving danger zone. Historically, this always occurs before the halving, which will probably take place on April 19 or 20.

The price must also first pass $70,300 before the market can think of new all-time highs, says analyst Michaël van de Poppe. So far, the price has followed a historically recognizable pattern, namely a dip before the halving.

Source: https://bitcoinmagazine.nl/nieuws/bitcoin-verkoopgolf-nog-niet-voorbij-zeggen-analisten-van-jp-morgan



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