JPMorgan: the recent correction did not take bitcoin out of the overbought zone
JPMorgan analysts warned that the price of the first cryptocurrency could show a further drop. The company pointed out that bitcoin is overbought, despite the recent correction.
Analysts at JPMorgan Chase financial company have presented a new forecast regarding the value of the first cryptocurrency. In their opinion, despite the recent correction of the exchange rate, bitcoin is still in the overbought zone, writes The Block with reference to experts.
This week, the asset price has dropped by more than $12,000. Having reached a historical high of $73,650, bitcoin showed a noticeable decline. The cost of the first cryptocurrency dropped to $61,000.
Despite the noticeable decrease, the asset still remains in the excessively overvalued zone, the bank's report says. Experts admit a further reduction in the market capitalization of bitcoin.
This is indicated by two indicators at once: the proxy factor of JPMorgan futures positions and the premium of the bitcoin futures price in comparison with the spot value of the asset.
"Both metrics indicate that the first cryptocurrency remains in overbought territory, despite a sharp correction this week," the experts noted.
The company points to the presence of significant optimism in the market, which is fueled by recent record injections of funds into spot bitcoin ETFs. Nevertheless, the latest data on this sector shows a decrease in net inflows, JPMorgan said. According to experts, this confirms the lack of continuous financial injection into cryptocurrency ETFs.
In addition, representatives of the financial giant expect further profit-taking against the background of approaching bitcoin halving. Earlier, JPMorgan allowed the collapse of the exchange rate of the first cryptocurrency to $ 42,000 after reducing the reward for mining the asset by half.
Source: https://incrypted.com/jpmorgan-nedavnjaja-korrektsyja-ne-vyvela-bytkoyn-yz-zony-perekuplennosty/
