Bitcoinโs Future Trajectory: JPMorgan Raises Concerns
Despite the general optimism surrounding Bitcoinโs future trajectory and the upcoming Bitcoin Halving, analysts at JPMorgan are cautioning that the flagship cryptocurrency may face some challenges before experiencing significant upward movement.
Further Pullbacks Anticipated for Bitcoin
In a recent report by Bloomberg, JPMorgan strategists have issued a warning that Bitcoin could potentially experience further pullbacks following its recent decline. They point to the net outflows observed in Spot Bitcoin ETFs, which indicate the prevailing bearish sentiment in the Bitcoin ecosystem.
The JPMorgan analysts, led by Nikolaos Nikolaos Panigirtzoglou, also highlight the sustained open interest in CME Bitcoin futures as another bearish signal for Bitcoinโs price. They argue that Bitcoin still appears overbought and anticipate additional price dips leading up to the Halving event in mid-April.
Furthermore, these analysts emphasize the decline in net inflows into Spot ETFs, asserting that this demonstrates the impossibility of sustained one-way net inflow. As a result, they expect investors in these funds to continue taking profits as the Halving approaches. The analysts claim that Bitcoin still looks overbought despite the correction witnessed in the past week.
This research note from JPMorgan reaffirms their bearish sentiment towards Bitcoinโs price, even though the cryptocurrency has surpassed expectations. Last month, the bank predicted that Bitcoin could drop to as low as $42,000 after April as โBitcoin-halving-induced euphoria subsides.โ
Naeem Aslam, chief investment officer at Zaye Capital Markets, shares similar sentiments to JPMorgan when he suggests that Bitcoinโs recent rally lacked sufficient strength. Aslam believes that if the Halving event fails to maintain momentum, Bitcoin could fall below $50,000.
Post-Halving Possibilities
Crypto trader and analyst Rekt Capital recently provided insights into what might occur after the Halving event. He discussed the four phases of Bitcoin Halving and highlighted the re-accumulation period that typically follows the event, which can last up to five months.
During this phase, many investors may become disheartened due to boredom, impatience, and disappointment with the lack of significant results in their BTC investments immediately after the Halving. Rekt Capital notes that this time might be different since it is the first time this re-accumulation could develop around the new all-time high (ATH) area.
Therefore, he believes that this โRe-Accumulation Rangeโ may simply take the form of a regular sideways range and may not endure for an extended period before experiencing further uptrend continuation.
Hot Take: JPMorgan Raises Concerns About Bitcoinโs Future Trajectory
Despite optimism about Bitcoinโs future trajectory heading into the Bitcoin Halving, analysts at JPMorgan have raised concerns that things may not go according to everyoneโs expectations. They believe that a storm still lies ahead for the flagship crypto token before any massive move to the upside.
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