Bloomberg Intelligence’s senior macro strategist Mike McGlone is outlining his bearish outlook on Bitcoin (BTC) after the crypto king’s strong performance in the first half of the year.
McGlone tells his 58,000 Twitter followers that he thinks Bitcoin is in a poor technical position as it continues to edge downward despite the recent strength in the stock market.
According to the market strategist, Bitcoin’s rally above $30,000 this year could be seen as an overextended bounce within a macro bear winter.
“Bitcoin may be extended within a downtrend…
Our graphic shows the downward journey of Bitcoin’s 52-week moving average vs. the upward trend at the onset of the pandemic. The crypto has bounced from too cold in 2022 at around $15,000 and may have turned too hot in April at about $30,000.
It’s the enduring patterns of booms on the back of liquidity and busts when it’s removed that tilts our direction bias for Bitcoin toward respecting the down-sloping 52-week mean.
That the Fed has tightened twice despite a bank run may show the central bank’s tenacity. Slumping copper and cryptos appear to be heeding the warning in contrast notably to the resilient stock market.”
Earlier this month, McGlone said that the second half of the year could be ugly for crypto assets and equities as he believes the Federal Reserve is still on the path of increasing interest rates.
At time of writing, Bitcoin is trading for $25,849, down over 2% in the last 24 hours.
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