Bitcoin (BTC) In Overbought Territory, Slowing ETF Inflows A Concern

In its newest analysis report, JPMorgan strategists cautioned that the pullback might proceed additional. Bitcoin has retraced over 10% from its peak already, with curiosity in rising spot Bitcoin ETFs cooling off.

Bitcoin In “Overbought” Territory

All 10 spot Bitcoin ETFs mixed lately skilled their most substantial three-day outflow since their launch on January 11. Concurrently, the main cryptocurrency is on monitor for considered one of its most difficult weeks this 12 months, following a 4% decline. At press time, Bitcoin is buying and selling at $65,971 with a market cap of $1.297 trillion.

In accordance with JPMorgan strategists, Bitcoin seems to be within the ‘overbought’ territory, reiterating a prediction from February of additional downward actions main as much as April’s extremely anticipated halving occasion.

In a be aware on Thursday, JPMorgan strategists led by Nikolaos Panigirtzoglou highlighted that sustained open curiosity in CME Bitcoin futures coupled with lowering ETF flows signify vital bearish indicators for Bitcoin’s value. The strategists wrote:

“The tempo of web inflows into spot Bitcoin ETFs has slowed markedly, with the previous week seeing a major outflow. This challenges the notion that the spot Bitcoin ETF movement image goes to be characterised as a sustained one-way web influx. As we strategy the halving occasion this revenue taking is extra more likely to proceed, significantly in opposition to a positioning backdrop that also seems overbought regardless of the previous week’s correction.”

Final month, JPMorgan forecasted that Bitcoin’s value would regularly decline towards $42,000 post-April, because the “Bitcoin-halving-induced euphoria” diminishes.

Retail Participation Dropping

Regardless of the BTC price reaching an nearly record-high of $73,798 on March 14, there are indications that enthusiasm amongst retail merchants is perhaps fading, as famous by Naeem Aslam, the Chief Funding Officer at Zaye Capital Markets.

Aslam acknowledged, “The rally’s lack of great momentum following the all-time excessive has led many to query its energy. With the halving occasion approaching, if it fails to maintain momentum, we may witness a considerable retracement, probably inflicting the worth to drop under $50,000.”

Some market analysts consider that Bitcoin will enter a interval of consolidation hereon. In accordance with crypto analyst Michael van de Poppe, Bitcoin is at the moment present process a interval of consolidation. Earlier than the Federal Open Market Committee (FOMC) assembly, BTC started correcting.

Following the FOMC meeting, the upward bounce signifies a continuation of the consolidation section. Van de Poppe believes that the native backside has been reached, anticipating sideways motion within the close to time period.

#Bitcoin in a interval of consolidation.

Pre-FOMC, it began to right.

After FOMC, the upward bounce is now a continuation of the consolidation.

I believe we have discovered our native backside and can have sideways motion.

Slowly however absolutely, altcoins to get up. pic.twitter.com/8pvQPlQecR

— Michaël van de Poppe (@CryptoMichNL) March 21, 2024