As Bitcoin approached the highly anticipated Halving event, analysts at JPMorgan sounded a note of caution. They pointed to the recent net outflows from Spot Bitcoin ETFs as an indicator of bearish sentiment in the market. Led by Nikolaos Nikolaos Panigirtzoglou, the strategists highlighted the sustained open interest in CME Bitcoin futures as another worrying sign for Bitcoin’s price. They suggested that Bitcoin may still be overbought, leading to the expectation of further price dips in the lead-up to the Halving event in mid-April.
The decline in net inflows into Spot ETFs was also noted by JPMorgan analysts, who emphasized that one-way net inflows were not sustainable. They predicted that investors in these funds would continue to take profits ahead of the Halving event. Despite Bitcoin’s recent correction, the analysts claimed that it still appeared overbought. This cautious stance was further reinforced by the bank’s earlier prediction that Bitcoin could drop as low as $42,000 after April, once the “Bitcoin-halving-induced euphoria subsides.”
Market Sentiment and Price Speculation
The bearish sentiment towards Bitcoin’s price was echoed by Naeem Aslam, chief investment officer at Zaye Capital Markets, who expressed skepticism about the strength of Bitcoin’s recent rally. He warned that if the Halving event fails to maintain momentum, Bitcoin could fall below $50,000. Crypto trader and analyst Rekt Capital also provided insights into the potential post-Halving market dynamics, highlighting a possible re-accumulation period that could last up to five months. During this phase, investors may become impatient and disappointed with the lack of immediate results in their BTC investments.
Re-Accumulation and Price Stability
Rekt Capital suggested that the current re-accumulation phase could be unique, occurring around the new all-time high (ATH) area for the first time. He speculated that this period might take the form of a sideways range before a potential uptrend continuation. Despite these predictions and analyses, Bitcoin’s price struggles to establish firm support levels, as seen in the fluctuating chart from Tradingview.com.
It is important to note that all information provided in this article is for educational purposes only. The opinions expressed by JPMorgan analysts, Naeem Aslam, and Rekt Capital do not reflect the views of NewsBTC. Investing in cryptocurrencies carries inherent risks, and individuals are advised to conduct their own research before making any investment decisions. Any actions taken based on the information provided in this article are done at the reader’s own risk.
The bearish case for Bitcoin post-Halving is supported by various warning signals and predictions from industry experts. While some anticipate a re-accumulation phase and potential price stability, the overall sentiment remains cautious. Investors and traders are urged to exercise caution and remain vigilant in the current market environment.