Financial analysts at JPMorgan Chase have published new forecasts for the value of major digital currencies. Despite the recent price correction, bitcoin seems to remain in the overbought zone, The Block reported, citing industry experts.
The asset's price fell sharply by more than $12,000 during the week, after peaking at 73,650, showing a noticeable decline. The value of the first cryptocurrency fell to $61,000.
Despite the apparent decline, the assets are still in the overvalued zone, as indicated in the bank's publications. Analysts predict that Bitcoin's market capitalization could fall even further.
This assertion is supported by 2 key indicators: the proxy of JPMorgan's futures positions and the premium of bitcoin futures to the spot value of the asset.
"Both indicators show that bitcoin remains in overbought territory despite the recent sharp correction",emphasized the expert.
The company emphasizes the general optimism of the market due to the significant inflow of funds into spot #bitcoin-ETFs. However, recent data on the sector shows a decline in net inflows and the lack of sustainable financial support for crypto-ETFs.
In addition, as the #halving event approaches, representatives of the financial giant expect more profit-taking activity. Earlier, JPMorgan envisioned a potential collapse in bitcoin prices to $42,000 after the halving.
