Analyst Issues Stern Crypto Warning, Says Bitcoin “May Have Gone Too Hot” In Downtrend

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June 11, 2023 2:42 p.m. | 2 minute read

Bloomberg macro strategist Mike McGlone said he believes Bitcoin (CRYPTO:BTC) is in a bad technical position as it continues to decline.

In a post on Twitter, McGlone outlined his bearish outlook for BTC and said its rally above $30,000 this year could be seen as an excessive bounce in a macro bearish winter.

Our chart shows the descending course of Bitcoin’s 52-week moving average against the uptrend at the start of the pandemic. The crypto rebounded from too cold in 2022 at around $15,000 and possibly got too hot in April at around $30,000, McGlone said in the Tweet.

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Bitcoin may be extended in a downtrend. It is the enduring patterns of booms on the back of liquidity and falls when removed that tilt our directional bias for Bitcoin towards respecting the 52-week downward sloping average, he added.

Also read:Bitcoin Records Gains; Pepe emerges as the top winner

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Speaking on the Fed’s recent decision, McGlone said the Fed’s decision to tighten twice after a bank run could show the tenacity of central banks. The collapse of copper and cryptos seems to heed the warning, unlike the resilient stock market.

Earlier this month, he warned that the worst may not be over for Bitcoin, predicting a liquidity crunch in the second half of 2023 due to an expected US recession.

McGlone said BTC will fall further due to headwinds from the recession. While markets have rebounded recently, a broader downtrend will continue, he added.

Our downside outlook is guided by lessons from the liquidity pumps that are reversing and still dumping, as indicated by the fed funds futures one year ahead (FF13). Therefore, it may take a decline in equities for rates to come down. McGlone said.

At the time of writing, Bitcoin was trading at $26,018, down 4.3% over the past seven days.

Now read: Family of missing ‘Bitcoin millionaire’ say they were ‘kept in the dark’ after he was found dead

Photo: Shutterstock

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