Bitcoin: JPMorgan Warns Against Overbought

The recent correction failed to bring Bitcoin out of the overbought zone, according to JPMorgan analysts. This means the largest cryptocurrency by market capitalization may be poised for further declines. - reports The Block .

Nikolaos Panigirtzoglou , a lead analyst at JPMorgan, pointed to two indicators that signal overbought: JPMorgan's proxy futures position and the Bitcoin futures price premium over the spot price in a note on Thursday.

“Both metrics indicate that Bitcoin remains in overbought territory, despite the sharp correction over the past week,” Panigirtzoglou noted.

Optimism for Bitcoin's year-end gains, fueled by expectations of robust demand through spot ETFs, could be dampened by a slowdown in net inflows into these funds, JPMorgan said.

“Profit taking is likely to continue as the halving approaches, especially given positioning that still appears overbought,” analysts predict.

Last week, JPMorgan predicted Bitcoin would fall to $42,000 after the halving, citing reduced miner rewards and rising mining costs.

Despite the recent correction, JPMorgan calls for caution and does not rule out further declines in the price of Bitcoin.