Despite optimism regarding Bitcoin’s Future Trajectory going to the Bitcoin Halving, JPMorgan analysts raised concerns that things may not go according to everyone’s expectations. They believe a storm is still ahead for the top crypto token before any massive move higher.
More Bitcoin Pullbacks Expected
According to a Bloomberg report, JPMorgan strategists warned that Bitcoin could still see further pullbacks following its recent decline. They alluded to recent net outflows recorded by Spot Bitcoin ETFswhich highlighted the current bearish sentiment in the Bitcoin ecosystem.
These strategists, led by Nikolaos Nikolaos Panigirtzoglou, also highlighted the sustained open interest in CME Bitcoin futures as another bearish sign for the Bitcoin price. They further argue that Bitcoin “still appears overbought” and expect further price drops ahead of the Halving event in mid-April.
However, these JPMorgan analysts emphasized the decline in net inflows into spot ETFs, noting that this proves that a sustained unilateral net inflow is not possible. Therefore, they hope investors in these funds to continue making profits towards the Bitcoin Halving. This wave of profit-taking is also more likely considering Bitcoin “still looks overbought despite last week’s correction.” they claimed.
This recent research note from JPMorgan further reaffirms its bearish sentiment towards the price of Bitcoin despite the leading cryptocurrency exceeding expectations. Last month, the bank predicted that Bitcoin could fall to $42,000 after April as “Bitcoin halving-induced euphoria subsides.”
Naeem Aslam, chief investment officer at Zaye Capital Markets, also echoed JPMoragni’s sentiments when he suggested that Bitcoin’s recent recovery did not show enough strength. Aslam believes Bitcoin could fall below $50,000 if the Halving event “fails to really keep pace.”
What could happen after the halving event
Crypto Trader and Analyst Rekt Capital recently supplied insights into what could happen after the Havling event as we elaborate on the four phases of the Bitcoin Halving. According to him, there is usually a period of reaccumulation after the Halving, which can last up to five months.
During this period, he observed that many investors are “struck at this stage by boredom, impatience and disappointment with the lack of important results in their businesses”. BTC Investment right after the halving.” Rekt Capital added that this time might be different as this is the first time this reaccumulation could develop around the new all-time high (ATH) area.
Therefore, he believes that this “reaccumulation range may simply take the form of a regular sideways range and may not last long before further continuation of the uptrend.”
BTC price struggles to establish support | Source: BTCUSD on Tradingview.com
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