Bitcoin is showing the same pattern as when the 2018 bear market ended. This conclusion was reached by Mike McGlone, senior Bloomberg Intelligence strategist for commodities.
With the Bloomberg Galaxy Crypto Index nearing a similar drawdown as the 2018 bottom and #Bitcoin‘s discount to its 50- and 100-week moving averages similar to past foundations, risk vs. reward is tilting toward responsive investors in 2H.
— Mike McGlone (@mikemcglone11) July 6, 2022
The expert pointed to the discount of the current price of the first cryptocurrency to its 50-week and 100-week moving averages, as well as the size of the Bloomberg Galaxy Crypto Index drawdown from its ATH.
In 2018, Bitcoin fell from $16,000 in January to $3,200 by mid-December, before rebounding to around $13,000 over the following six months.
The expert noted that the digital-asset market has reached a moment of truth.
«Bitcoin is on the cusp of one of the greatest bull markets, which will begin in the second half of the year. Or many will come to admit that digital assets have been a failed experiment. We believe that the mainstreaming of cryptocurrencies will continue», — said McGlone.
The expert compared the cryptocurrency market’s decline in the first half of the year with the dot-com bubble of 2000–2002. De-leveraging was characteristic of all risky assets during that period, he added.
The specialist said that a further 75 basis-point rate hike by the Fed is unlikely if the pace of the stock market declines observed in January–June persists.
In June, McGlone forecast Bitcoin’s store-of-value status в статусе актива для накоплений.
In January, the Bloomberg strategist said there were chances of Bitcoin price rising in 2022 до $100 000.
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