Banking giant JPMorgan’s analysts are expecting further declines in Bitcoin (BTC).
JPMorgan analysts, led by Nikolaos Panigirtzoglou, made statements that will worry Bitcoin investors in a note shared on Thursday, March 21st.
Despite the correction that took place last Friday, analysts pointed out that Bitcoin is still in an “extreme buying zone” and reminded that the risk appetite is high.
They implied that the market needs to cool down more before reaching higher levels and expressed that corrections could continue:
Indicators show that despite last week’s sharp correction, Bitcoin remained in overbought territory. What has happened so far has been a small relaxation, and further decline may occur.
They are also expecting a decline after the Bitcoin halving
In addition to short-term decline expectations, JPMorgan analysts foresaw a deeper decline after the Bitcoin halving expected in mid-April, mentioning that the price could fall to $42,000.
As a reason for this decline, analysts cited that fund flows into spot Bitcoin ETFs will slow down in the coming period. It was stated that the wave of spot Bitcoin ETFs and the halving wave could ultimately result in profit-taking, potentially lowering the price to $42,000.
