JPMorgan: Bitcoin will continue to consolidate
JPMorgan: Bitcoin will continue to consolidate
The price of Bitcoin (BTC) is down 10% from its all-time high as demand for Bitcoin ETFs continues to decline.
Analysts at JPMorgan Chase and Co. believe that the price of Bitcoin could continue to drop.
According to Farside Investors, outflows from 10 spot Bitcoin ETFs totaled $94 million on March 21, with $681.7 million in the last three days. Total outflows from the Grayscale Bitcoin fund exceeded $1.8 billion for the week.
At the same time, bitcoin's strong post-Fed meeting rally was halted, and the price of the largest cryptocurrency by market cap entered a consolidation phase.
At the time of writing, BTC is trading at $66,229, showing a decline of 1.2% in the last 24 hours.
Analysts at JPMorgan stressed that Bitcoin still looks overbought, suggesting further declines ahead of the halving, Bloomberg reported.
In their latest note, the firm's analysts, led by Nikolaos Panigirtzoglou, pointed out that persistent open interest in CME Bitcoin futures along with declining ETF flows are serious bearish signals for the BTC price.
"The pace of net inflows into spot Bitcoin ETFs has slowed significantly, with significant outflows last week ... As we approach the halving event, this profit-taking is likely to continue, especially against a backdrop of positioning that still looks overbought despite last week's correction," JPMorgan said.
The analysts also reiterated their February forecast that the BTC price could fall to $42,000 after April as the halving euphoria subsides.
Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, pointed out that Bitcoin's rally didn't really start from an all-time high, leading many to question its strength.
"We are in for a major pullback, which means the price could fall below $50,000," he said.
Despite this gloomy outlook from JPMorgan and Naeem Aslam, analysts at Bernstein are optimistic about BTC's future trajectory and have raised their year-end price target from $80,000 to $90,000.
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