Analysts at JPMorgan Chase (JPM) say that Bitcoin (BTC) is in “overbought” territory and that the price of the largest cryptocurrency may have further to fall in coming weeks.
The price of Bitcoin fell 15% over the past week after hitting an all-time high of just under $74,000 U.S. on March 14.
Despite the steep and sudden correction, JPMorgan says in a note to clients that the selloff may not be over and that Bitcoin continues to look “overbought” at current levels.
The price of Bitcoin rose sharply higher after U.S. regulators approved spot Bitcoin exchange-traded funds for the American market in January of this year.
Bitcoin is currently trading at $64,500 U.S. There is expectation that the price will rally in the lead-up to an April halving event, which is when the amount of Bitcoin that can be mined is reduced by 50%.
JPMorgan notes that the pace of inflows into spot Bitcoin ETFs has slowed considerably in recent days, with a significant outflow recorded since the price hit a record high.
The bank also questions how beneficial the upcoming halving event will be to the price of Bitcoin in the near-term.
“As we approach the halving event this profit-taking is more likely to continue, particularly against a positioning backdrop that still looks overbought despite the past week’s correction,” concludes JPMorgan’s research note.
The stock of JPMorgan Chase has risen 16% so far in 2024 and is trading at $199.06 U.S. Bitcoin’s price is up 46% on the year despite the recent pullback.
