Bitcoin Troubles Far From Over As More Carnage Looms, JPMorgan Analysts
Despite optimism about Bitcoins future trajectory heading into the Bitcoin Halving, analysts at JPMorgan have raised concerns that things may not go according to everyones expectations. They believe that a storm still lies ahead for the flagship crypto token before any massive move to the upside.
Further Bitcoin Pullbacks Are To Be Expected
According to a Bloomberg report, JPMorgan strategists have warned that Bitcoin could still experience further pullbacks following its recent decline. They alluded to the recent net outflows recorded by the Spot Bitcoin ETFs, which underscored 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 signal for Bitcoins price. They further argue that Bitcoin still looks overbought and expect further price dips leading up to the Halving event in mid-April.
Meanwhile, these JPMorgan analysts emphasized the decline in net inflows into Spot ETFs, noting that this proves that a sustained one-way net inflow is not possible. Therefore, they expect investors in these funds to keep taking profits heading into the Bitcoin Halving. This wave of profit-taking is also more likely, considering that Bitcoin still looks overbought despite the past weeks correction. they claimed.
This recent research note by JPMorgan further reaffirms their bearish sentiment towards Bitcoins price despite the flagship crypto exceeding expectations. Last month, the bank predicted that Bitcoin could drop to as low as $42,000 after April as Bitcoin-halving-induced euphoria subsides.
Naeem Aslam, chief investment officer at Zaye Capital Markets, also echoed JPMoragns sentiments when he suggested that Bitcoins recent rally didnt show enough strength. Aslam believes Bitcoin could fall below $50,000 if the Halving event fails to really keep the momentum going.
What Could Happen After The Halving Event
Crypto trader and analyst Rekt Capital recently provided insights into what could happen after the Havling event while elaborating on the four phases of Bitcoin Halving. According to him, there is usually a re-accumulation period after the Halving, which could last for up to five months.
During this period, he noted that many investors get shaken out in this stage due to boredom, impatience, and disappointment with lack of major results in their BTC investment in the immediate aftermath of the Halving. Rekt Capital added that this time could be different since it is the first time this re-accumulation could develop around the new all-time high (ATH) area.
Therefore, he believes this Re-Accumulation Range may simply take the shape of a regular sideways range and may not last very long before additional uptrend continuation.
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Text source: NewsBTC
