According to banking giant JPMorgan, Bitcoin still remains in the “overbought territory” despite its recent declines. Overbought means that the market is overly optimistic and prices have reached potentially unsustainable levels.

JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note published today that two metrics show that Bitcoin is still overbought. These metrics are the bank’s futures position indicators and Bitcoin’s spot and futures price difference.

“Both metrics indicate that Bitcoin remains in overbought territory despite the sharp correction over the past week,” they said, according to The Block’s report, noting that these metrics have so far indicated a small relaxation in positions.

“Profit-taking will continue”

JPMorgan analysts, who also emphasised that there was a slowdown in investments in spot ETFs, argued that profit-taking was more likely to continue:

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

JPMorgan, which has recently attracted attention with its negative comments on the course of Bitcoin, wrote in early March that Bitcoin could fall to $42,000 after halving.