Despite optimism about Bitcoin’s future trajectory on the way to the Bitcoin halvingAnalysts at JPMorgan have expressed concern that things may not go according to everyone’s expectations. They believe there is still a storm ahead for the flagship crypto token before a huge move emerges.
Further Bitcoin pullbacks are to be expected
According to a Bloomberg reportJPMorgan strategists have warned that Bitcoin could still experience further pullbacks after its recent decline. They alluded to the recent net outflow recorded by the Discover Bitcoin ETFswhich underlined the current bearish sentiment in the Bitcoin ecosystem.
These strategists, led by Nikolaos Nikolaos Panigirtzoglou, also highlighted the continued open interest in CME Bitcoin futures as a new bearish signal for Bitcoin’s price. They further claim that Bitcoin “still appears overbought” and expect further price declines ahead of the Halving in mid-April.
Meanwhile, these JPMorgan analysts highlighted the decline in net inflows into Spot ETFs, noting that this proves that sustained one-sided net inflows are not possible. That’s why they expect investors in these funds to continue taking profits heading into the Bitcoin halving. This wave of profit-taking is also more likely, given that Bitcoin “still appears overbought despite last week’s correction.” they claimed.
This recent research note from JPMorgan further confirms their bearish sentiment on Bitcoin’s price, despite the flagship crypto exceeding expectations. Last month, the bank predicted that Bitcoin could fall to a low of $42,000 after April as the “Bitcoin halving-induced euphoria subsides.”
Naeem Aslam, chief investment officer at Zaye Capital Markets, also echoed JPMoragn’s sentiments when he suggested that Bitcoin’s recent rally didn’t show enough strength. Aslam believes Bitcoin could fall below $50,000 if the Halving event “fails to really keep the momentum going.”
What could happen after the halving?
Crypto trader and analyst Rekt Capital recently provided insights into what could happen after the Havling event, as we work out the four phases of Bitcoin Halving. According to him, after the halving there is usually a reaccumulation period, which can last up to five months.
During this period, he noted that many investors in this phase are “thrown off balance by boredom, impatience, and disappointment over the lack of big returns in their investment portfolios. BTC investment in the immediate aftermath of the halving.” Rekt Capital added that this time it could be different as it is the first time this has happened reaccumulation could develop around the new all-time high (ATH) area.
Therefore, he believes that this “reaccumulation series may simply take the form of a regular sideways series and it will not be long before a further upward trend continues.”
BTC price struggles to establish support | Source: BTCUSD on Tradingview.com
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