With the asset falling in value for much of this week, JP Morgan has recently stated that Bitcoin is still overbought despite the ongoing correction. Indeed, Spot Bitcoin ETF inflows have faced a slowing pace over this week. Moreover, outflows from the investment vehicles have increased significantly over that same time frame.
The bank said that the asset could see profit-taking continue into the Bitcoin Halving Event. Currently, the asset is down more than 4% over the last 24 hours according to CoinMarketCap. Subsequently, its price of $64,285 is a far cry from the $73,000 mark it reached earlier in March.
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JP Morgan Says Bitcoin Sell-Off May Be Poised to Continue
Throughout the past week, a host of digital assets have seen their prices decrease in value. Following a massive surge led by Bitcoin, a market-wide correction is taking place. BTC has been leading the way in that as well, with the asset down more than 4% over the last seven days.
However, JP Morgan believes that the sell-off of BTC May not be finished, as Bitcoin is still overbought according to the Bank. Specifically, in a report first reported by CoinDesk, analyst Nikolaos Panigirtzoglou discussed the asset’s current place in the market and its short-term prospects.
“There remains considerable optimism in the market over the prospect for prices rising significantly by year-end,” the bank said. “with a significant component of that optimism arising from a view that bitcoin demand via spot exchange-traded funds (ETFs) would continue that the same pace even as the supply of bitcoin diminishes after the halving event,”
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However, the bank notes the decline in inflows that those ETFs have faced. Moreover, the outflow data has surged this week. “This challenges the notion that the spot Bitcoin ETF flow picture is going to be characterized as sustained one-way ent inflow,” the bank wrote.
Thereafter, the bank said that “profit-taking is more likely to continue” after the halving. Moreover, they noted that the asset remains overbought amid the ongoing correction. The sentiment certainly places hopes for the assets’ performance post-halving into question.
Currently, the event is slated to take place next month. Specifically, the Bitcoin Halving Countdown projects the event to take place on April 20th. How Bitcoin’s value is positioned then will be an important point of observation.
