According to The Block’s report, analysts from JPMorgan believe that despite the recent correction in the price of Bitcoin, it is still in the “overbought zone.” Bitcoin may correct to $42,000.
Last week, Bitcoin retraced from its all-time high of $73,777 and dropped as low as $60,775, a decline of 17%. However, JPMorgan analysts argue that based on their futures positions and the Bitcoin futures/premium indicator, Bitcoin is still in the “overbought zone.” Despite the significant price adjustment in the past week, there have only been minor position closures.
The report also mentions the slowdown in inflows into Bitcoin spot ETFs, challenging the belief in the continuous inflow of funds into spot ETFs.
As the halving event approaches, the trend of profit-taking is more likely to continue.
According to a report earlier this month, JPMorgan believes that after the halving, the reduction in rewards and the increase in production costs will have a negative impact on miners’ profitability, and the price of Bitcoin may drop to around $42,000. Furthermore, considering factors such as risk and volatility, it is also unlikely for the market value of Bitcoin to surpass that of gold.
(JPMorgan: Bitcoin to retrace to $42,000 after halving in April)
(JPMorgan: Bitcoin price of $45,000 and surpassing the market value of gold is unreasonable)
JPMorgan
Bitcoin
Further reading:
JPMorgan raises Coinbase target price to $150, emphasizing that gold investors have not shifted to Bitcoin
MicroStrategy issues another $500 million convertible bond, with a conversion price of up to $2,327, JPMorgan concerned about bubble risk