In short: Bitcoin's current price of around $27,000 may be at risk of reversion, according to Mike McGlone, senior commodity strategist at Bloomberg, who highlights its historical patterns of boom and bust tied to liquidity. McGlone cites liquidity drying up and rising interest rates as key factors leading to a mean reversion for Bitcoin. Crypto analyst Michael Van de Poppe suggests the ABC pattern could technically be complete for BTC, with both scenarios (above $27,700 or below $16,700) considered bullish over the medium timeframe if Bitcoin's price stays under $22,000.
Our quick analysis:
Bitcoin, the cryptocurrency that has captivated investors around the world with its erratic price projections, is back in the news again. This time around, senior commodity strategist at Bloomberg, Mike McGlone, is warning investors of the historic patterns of boom and bust that are inherent to Bitcoin's liquidity. In this article, we delve deeper into McGlone's analysis and see what it means for Bitcoin's future.
McGlone's analysis points to a downward trend in Bitcoin's 52-week moving average juxtaposed against a surge in 2020. This highlights the relationship between Bitcoin's value and liquidity, where it booms when liquidity is abundant but busts when liquidity dries up. This warning assumes particular significance now given Bitcoin's current price level of around $27,000 after the massive liquidity pump in 2020.
McGlone cites rising interest rates and drying up of liquidity as critical factors that could lead to mean reversion for Bitcoin and signal a sharp decline, potentially beginning from its 2019 rally starting price of around $7,000. Although Bitcoin is currently trading at four times its 2019 average price, McGlone cautions investors to exercise caution.
Looking at the bright side, crypto analyst Michael Van de Poppe assessed Bitcoin's price action and suggested that the ABC pattern could be technically complete. Despite the pattern being uncommon, consolidation points towards potential upward movement. The RSI is currently above 50, and if the price breaks above $27,700 or flips the descending trend line, it could indicate consolidation's end and Bitcoin's upward trend's continuation.
In conclusion, the question of whether Bitcoin will bust or boom remains unanswered. However, with McGlone's warning ringing true for investors to exercise caution and Van de Poppe's technical analysis signaling potential upward movement, investors' hope remains strong. As Bitcoin does what it does best, dance to the rhythm of liquidity, only time will tell whether it busts or booms.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
Bitcoin, the cryptocurrency that has captivated investors around the world with its erratic price projections, is back in the news again. This time around, senior commodity strategist at Bloomberg, Mike McGlone, is warning investors of the historic patterns of boom and bust that are inherent to Bitcoin's liquidity. In this article, we delve deeper into McGlone's analysis and see what it means for Bitcoin's future.
McGlone's analysis points to a downward trend in Bitcoin's 52-week moving average juxtaposed against a surge in 2020. This highlights the relationship between Bitcoin's value and liquidity, where it booms when liquidity is abundant but busts when liquidity dries up. This warning assumes particular significance now given Bitcoin's current price level of around $27,000 after the massive liquidity pump in 2020.
McGlone cites rising interest rates and drying up of liquidity as critical factors that could lead to mean reversion for Bitcoin and signal a sharp decline, potentially beginning from its 2019 rally starting price of around $7,000. Although Bitcoin is currently trading at four times its 2019 average price, McGlone cautions investors to exercise caution.
Looking at the bright side, crypto analyst Michael Van de Poppe assessed Bitcoin's price action and suggested that the ABC pattern could be technically complete. Despite the pattern being uncommon, consolidation points towards potential upward movement. The RSI is currently above 50, and if the price breaks above $27,700 or flips the descending trend line, it could indicate consolidation's end and Bitcoin's upward trend's continuation.
In conclusion, the question of whether Bitcoin will bust or boom remains unanswered. However, with McGlone's warning ringing true for investors to exercise caution and Van de Poppe's technical analysis signaling potential upward movement, investors' hope remains strong. As Bitcoin does what it does best, dance to the rhythm of liquidity, only time will tell whether it busts or booms.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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