In its newest analysis report, JPMorgan strategists cautioned that the pullback could proceed additional. Bitcoin has retraced over 10% from its peak already, with curiosity in rising spot Bitcoin ETFs cooling off.
Bitcoin In “Overbought” Territory
All 10 spot Bitcoin ETFs mixed just lately skilled their most substantial three-day outflow since their launch on January 11. Concurrently, the main cryptocurrency is on monitor for considered one of its most difficult weeks this yr, following a 4% decline. At press time, Bitcoin is buying and selling at $65,971 with a market cap of $1.297 trillion.
According to JPMorgan strategists, Bitcoin seems to be within the ‘overbought’ territory, reiterating a prediction from February of additional downward actions main as much as April’s extremely anticipated halving occasion.
In a observe on Thursday, JPMorgan strategists led by Nikolaos Panigirtzoglou highlighted that sustained open curiosity in CME Bitcoin futures coupled with lowering ETF flows signify vital bearish indicators for Bitcoin’s value. The strategists wrote:
“The pace of net inflows into spot Bitcoin ETFs has slowed markedly, with the past week seeing a significant outflow. This challenges the notion that the spot Bitcoin ETF flow picture is going to be characterized as a sustained one-way net inflow. 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.”
Last month, JPMorgan forecasted that Bitcoin’s value would progressively decline towards $42,000 post-April, because the “Bitcoin-halving-induced euphoria” diminishes.
Retail Participation Dropping
Despite the BTC price reaching an virtually record-high of $73,798 on March 14, there are indications that enthusiasm amongst retail merchants may be fading, as famous by Naeem Aslam, the Chief Investment Officer at Zaye Capital Markets.
Aslam said, “The rally’s lack of significant momentum following the all-time high has led many to question its strength. With the halving event approaching, if it fails to sustain momentum, we could witness a substantial retracement, potentially causing the price to drop below $50,000.”
Some market analysts consider that Bitcoin will enter a interval of consolidation hereon. According to crypto analyst Michael van de Poppe, Bitcoin is presently present process a interval of consolidation. Before the Federal Open Market Committee (FOMC) assembly, BTC started correcting.
Following the FOMC meeting, the upward bounce signifies a continuation of the consolidation section. Van de Poppe believes that the native backside has been reached, anticipating sideways motion within the close to time period.
#Bitcoin in a interval of consolidation.
Pre-FOMC, it began to right.
After FOMC, the upward bounce is now a continuation of the consolidation.
I believe we have discovered our native backside and could have sideways motion.
Slowly however certainly, altcoins to get up. pic.twitter.com/8pvQPlQecR
— Michaël van de Poppe (@CryptoMichNL) March 21, 2024
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