According to JPMorgan analysts, Bitcoin experienced a significant drop last week, but has since recovered; however, it is still considered to be in an “overbought” state. This suggests the cryptocurrency could face further declines. JPMorgan’s futures position proxies and Bitcoin futures price premium over spot show the crypto remains in overbought territory, with only small position reductions so far. Despite optimistic expectations for the Bitcoin price in the coming months, recent data has shown a slowdown in net inflows into spot ETFs, calling into question the belief that there will be a continued flow of funds into these instruments. With the upcoming halving of Bitcoin supply, JPMorgan analysts believe profit-taking is likely to continue, especially given the current overbought position.
