JPMorgan Warns BTC Overbought

JPMorgan analysts warn that BTC is overbought, despite the recent correction. Writes #TheBlock.#JPMorgananalysts led by Nikolaos Panigirtzoglou wrote that two indicators - JPMorgan futures position proxies and the#BTCfutures price premium over the spot price - suggest the asset is still in "overbought territory."

There is significant optimism in the market for BTC prices to rise by the end of the year, fueled by expectations of robust demand through spot ETFs. However, according to JPMorgan analysts, recent data shows a slowdown in net inflows into spot Bitcoin ETFs, calling into question the belief in a continuous one-way flow of funds into them:

“In fact, as we move closer to the halving, profit taking is likely to continue, especially with positioning still looking overbought despite last week's correction.”

At the end of February, JPMorgan analysts predicted that the price of BTC would likely fall to around $42,000 after the halving.

Their assessments should not be taken as the ultimate truth, because:

- On November 9, 2023, JPMorgan stated that the crypto market was overheated, and a little later in November - that the launch of spot Bitcoin ETFs would not bring a significant influx of capital into the industry. The#BTCprice increase since then has been about +75%.

- On February 22, 2024, JPMorgan stated that the current BTC rally is driven by impulsive decisions of retail investors, and not by institutions or market fundamentals. The price increase for #BTC/USDT: since then has been about +25%.

And the entire current correction, compared to the past growth, looks modest.

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