JP Morgan: Bitcoin Still Overbought After Correction, Drops to $42,000 – Decenter

There are observations that the (BTC) price, which underwent a sharp correction last week, may continue its downward trend.

According to Cointelegraph on the 21st (local time), JP Morgan analyzed in a report that “the virtual asset market is still overbought even after last week's sharp correction.” They indicated that BTC is in an overbought zone based on futures position proxy and BTC futures price premium indicator. Since only a portion of the futures position is liquidated, there is a high probability that profit taking will continue into the future.

A slowdown in BTC spot ETF net inflows also adds weight to the bearish outlook for the BTC price. Until recently, there was widespread optimism in the industry that even if the supply of BTC decreases after the halving, the BTC spot ETF will continue to drive demand and the price of BTC will continue to rise until the end of this year. However, the BTC spot ETF showed net outflows for three consecutive days as of the 20th. There was a net outflow of $154 million (about 205.8 billion won) in 2018, $326 million (about 435.7 billion won) in 2019, and $261 million (about 349 billion won) in 2019.

In addition, the price of BTC is expected to drop significantly due to the reduction in compensation for miners and the increase in production costs due to the halving. JP Morgan predicted that the BTC price would halve to $42,000 (about 56.14 million won).

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