|
|
Bitcoin, which had just recovered for less than a day, softened and turned downward, plunging to a low of $64,760. Market analysis firm Swissblock suggests that the Bitcoin pullback correction has basically come to an end; however, analysts at JPMorgan Chase are singing a different tune, believing that Bitcoin is still in "overbought territory" and could potentially see further declines.
Swissblock points out that prior to yesterday's (21st) rebound, Bitcoin had nearly dropped to the expected "cooling-off phase" target range of $58,000 to $59,000, indicating that Bitcoin has completed its correction and is likely to move higher.
On the other hand, analysts led by Nikolaos Panigirtzoglou at JPMorgan Chase mentioned that by observing JPMorgan's futures position indicator and the premium of Bitcoin futures prices, it can be seen that there are still a large number of outstanding contracts yet to be closed.
The analysts stated: "Despite the sharp correction Bitcoin has experienced over the past week, both of these indicators suggest that Bitcoin is still in overbought territory."
Market optimism remains high, as the reduction in Bitcoin's new supply after the halving is expected to decrease, and the demand for spot ETFs is expected to continue to rise, thus bullish sentiments for Bitcoin's upward trajectory this year.
However, analysts pointed out that the net inflow of Bitcoin spot ETFs has recently slowed significantly, and there has even been a significant outflow of funds, indicating that the notion of "funds will continue to flow into spot ETFs unidirectionally" has clearly been disproven.
Now, as the halving approaches, this trend of profit-taking is more likely to continue, especially against the backdrop of a "correction in the past week but still in overbought territory."
JPMorgan Chase had previously predicted in early March that Bitcoin could fall to around $42,000 after the halving.
|
|
Post time 1-4-2024 07:46:11