According to JPMorgan, Bitcoin (BTC) remains overbought until the halving despite the recent correction

Cryptocurrency markets suffered a sharp correction last week, with the price of Bitcoin (BTC) falling over 15% before recovering after the Federal Open Market Committee (FOMC) meeting on Wednesday. The selloff may not be over yet as positioning still appears overbought, JPMorgan (JPM) said in a research report on Thursday.

“There remains great optimism in the market about the prospect of a significant price increase by the end of the year, with a significant part of this optimism based on the assumption that Bitcoin demand via spot exchange-traded funds (ETFs) will continue to grow even further “would continue at the same pace as the supply of Bitcoin decreases after the halving,” analysts led by Nikolaos Panigirtzoglou wrote.

However, the bank notes that the pace of net inflows into spot Bitcoin ETFs has slowed significantly, with significant outflows recorded over the past week.

“This challenges the notion that the spot Bitcoin ETF flow picture is characterized as a persistent unilateral net inflow,” the authors wrote.

“The closer we get to the halving event, the more likely it is that this profit-taking will continue, especially against a positioning backdrop that still appears overbought despite last week’s correction,” the report said.

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