Bitcoin Still Overbought Despite Price Drop
JPMorgan, a global investment bank, has warned that bitcoin is still in “overbought territory” despite its recent price decline.
The bank’s analysts, led by global strategist Nikolaos Panigirtzoglou, analyzed JPMorgan’s futures position proxies and the price premium of bitcoin futures compared to the spot price, indicating that bitcoin remains in overbought territory.
The bank also noted recent slowdowns in spot bitcoin exchange-traded fund (ETF) inflows, casting doubt on the market’s optimistic prediction of year-end price hikes.
JPMorgan analysts also noted that profit-taking is more likely to continue as the halving event approaches, particularly against a positioning backdrop that still looks overbought despite the recent week’s correction.
(With inputs from Shikha Singh)
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