JPMorgan Analysts Warn of Further Bitcoin Pullbacks Despite Halving Optimism

Further Bitcoin Pullbacks Are To Be Expected

Despite optimism surrounding Bitcoin’s future trajectory leading up to the Bitcoin Halving, analysts at JPMorgan have raised concerns about potential further pullbacks in the flagship cryptocurrency. According to a recent Bloomberg report, JPMorgan strategists have warned that Bitcoin could still experience additional declines following its recent drop. The analysts pointed to net outflows in Spot Bitcoin ETFs and sustained open interest in CME Bitcoin futures as bearish signals for Bitcoin’s price. They believe that Bitcoin “still looks overbought” and anticipate further price dips leading up to the Halving event in mid-April.

The JPMorgan analysts also highlighted a decline in net inflows into Spot ETFs, suggesting that sustained one-way net inflows are not sustainable. They expect investors in these funds to continue taking profits as Bitcoin approaches the Halving event. This profit-taking behavior is more likely given that Bitcoin “still looks overbought despite the recent correction,” they claimed.

This recent research note by JPMorgan reinforces their bearish outlook on Bitcoin’s price, with the bank previously predicting a potential drop to $42,000 post-Halving as the “Bitcoin-halving-induced euphoria subsides.” Naeem Aslam, chief investment officer at Zaye Capital Markets, echoed JPMorgan’s sentiments, suggesting that Bitcoin’s recent rally lacked strength and could fall below $50,000 if the Halving event fails to maintain momentum.

What Could Happen After The Halving Event

Crypto trader and analyst Rekt Capital provided insights into potential post-Halving scenarios, outlining the four phases of Bitcoin Halving. He noted that a re-accumulation period typically follows the Halving, lasting up to five months. During this phase, investors may become impatient or disappointed with the lack of immediate results, potentially leading to sell-offs.

Rekt Capital highlighted that this re-accumulation period could be different this time around, occurring near the new all-time high (ATH) area. He suggested that the “Re-Accumulation Range” may take the form of a sideways pattern and could lead to further uptrend continuation relatively quickly.

As Bitcoin’s price continues to fluctuate, investors and analysts alike are closely monitoring the market for any signs of further pullbacks or potential opportunities for growth post-Halving.