The price of bitcoin shows the same behavior as when forming the end of the bear market in 2018. Mike McGlone, senior commodities strategist at Bloomberg Intelligence, came to these conclusions.
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 towards 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 moving averages for the 50-week and 100-week periods, as well as the size of the drawdown of the Bloomberg Galaxy Crypto Index from ATH.
In 2018, bitcoin fell from $16,000 in January to $3,200 by mid-December, only to return to $13,000 over the next six months.
The specialist noted that the digital asset market has come to the moment of truth.
“Bitcoin is on the verge of one of the greatest bull markets that will begin in the second half of the year. Or many will begin to admit that digital assets have become a failed experiment. We believe that the popularization of cryptocurrencies will continue,” McGlone said.
The expert compared the fall of the cryptocurrency market in the first half of the year with the “bursting dot-com bubble of 2000-2002”. The elimination of leverage was typical for all risky assets during this period, he added.
The specialist called it unlikely that the Fed will further increase the key rate by 75 bp. n. in the case of maintaining the rate of fall of the stock market recorded in January-June.
Recall that in June, McGlone predicted the consolidation of the first cryptocurrency in the status of an asset for savings.
In January, a Bloomberg strategist announced the chances of an increase in the price of digital gold in 2022 up to $100,000.
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