Crypto News – Prior to this week’s recovery, Bitcoin had a severe decline last week. The biggest cryptocurrency by market capitalization, however, may possibly decline further because it is still in “overbought territory,” according to JPMorgan expert.
JPMorgan Analysts Say Bitcoin is Still in Overbought Territory
Two indicators, JPMorgan’s futures position proxies and the bitcoin futures price premium over the spot, indicate that bitcoin is still overbought, according to a note written on Thursday by JPMorgan analysts led by Nikolaos Panigirtzoglou. As per the analysts, these data show that there has been minimal unwinding of positions thus far.
Both metrics indicate that bitcoin remains in overbought territory despite the sharp correction over the past week,
the analysts
Bitcoin Price Expected to Increase by the End of the Year
Despite a decrease in the quantity of bitcoin following the halving event, there is a great deal of market confidence over higher prices for bitcoin by year’s end, driven by forecasts of continued demand through spot ETFs. The JPMorgan analysts argue that recent data challenges the notion of a constant one-way flow of capital into spot ETFs by demonstrating a decrease in net inflows into bitcoin ETFs.
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,
the analysts
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