(Bloomberg) -- Bitcoin has peeled back more than 10% from its all-time high as the appetite for fledgling spot Bitcoin exchange-traded funds contracted for a third day. JPMorgan Chase and Co. warns the retreat has room to deepen.

Most Read from Bloomberg

• NY Gears Up to Seize Trump Westchester Assets If Fraud Fine Is Unpaid

• Baltimore Wants to Sell Hundreds of Vacant Homes for $1 Each

• Justice Department to Sue Apple for Antitrust Violations as Soon as Thursday

• What Happens If Trump Can’t Post His $454 Million Bond

• Yemen’s Houthis Tell China, Russia Their Ships Won’t Be Targeted

The group of 10 spot Bitcoin ETFs notched $326 million of outflows on Tuesday, their single worst day of net flows since they launched on Jan. 11. Meanwhile, the price of the world’s largest cryptocurrency has logged three red days so far this week, falling 2.5% at 5:31 p.m. in New York to $65,467.

Despite a sharp correction over the past week, Bitcoin “still looks overbought,” JPMorgan strategists said, renewing a February call for further declines leading up to April’s highly-anticipated halving event, which will lower the supply of newly minted Bitcoin from miners.

Sustained open interest in CME Bitcoin futures along with declining ETF flows are significant bearish signals for the price of Bitcoin, the strategists led by Nikolaos Panigirtzoglou wrote in a note Thursday.

“The pace of net inflows into spot Bitcoin ETFs has slowed markedly, with the past week seeing a significant outflow,” the strategists wrote. “This challenges the notion that the spot Bitcoin ETF flow picture is going to be characterized as a sustained one-way net inflow. As we approach the halving event this profit taking is more likely to continue, particularly against a positioning backdrop that still looks overbought despite the past week’s correction.”

Last month, the bank predicted that the price of Bitcoin will drift down toward $42,000 after April as “Bitcoin-halving-induced euphoria subsides.”

Despite Bitcoin setting a record of $73,797 on March 14, enthusiasm among retail traders may be waning, according to Naeem Aslam, chief investment officer at Zaye Capital Markets.

“The fact that the rally didn’t really take off from the all-time high like before made many question the strength of the rally,” Aslam said. “The halving is almost here and if this event fails to really keep the momentum going, then it means that we are going to face serious retracement which means that the price could fall below $50,000.”

Most Read from Bloomberg Businessweek

• Elon Musk’s Don Lemon Implosion

• Weight-Loss-Drug Users Pay Up for Help Ditching the Pricey Meds

• Wall Street and Silicon Valley Elites Are Warming Up to Trump

• Magnificent Seven? It’s More Like the Blazing Two and Tepid Five

• Selling Shohei Ohtani: Can Baseball’s Biggest Talent Transform the Sport?

©2024 Bloomberg L.P.