Mike McGlone, senior commodity strategist at Bloomberg Intelligence, has reiterated his bearish stance on Bitcoin and added Dogecoin to his list of underperforming assets. While McGlone acknowledges that both cryptocurrencies are currently maintaining support levels, he believes these trendlines will eventually break, leading to a market downturn.
Bear Market Bounce or Bull Run?
McGlone published a chart illustrating the movements of Dogecoin alongside the “Bitcoin/gold cross,” a variation of the traditional “golden cross” pattern that compares Bitcoin’s price action with gold. Despite current support, McGlone predicts that a bear market bounce is more likely than a new bull run.
“The Bitcoin/gold cross and Dogecoin have the same-chart syndrome,” McGlone stated, suggesting that while the trendline support is still holding, it will eventually fail. He pointed to the ongoing decline in the stock market, which has recently entered a recession that many anticipated in 2023 but never materialized. According to McGlone, this broader market weakness will eventually pull cryptocurrencies lower.
The strategist also noted that Bitcoin and other digital assets are strongly correlated with traditional stock market indices, such as the S&P 500, Nasdaq, and Dow Jones, implying that the fate of crypto is intertwined with the performance of the broader financial markets.
Bitcoin’s Resilience Amid Uncertainty
Despite McGlone’s cautious outlook, Bitcoin has demonstrated resilience. On April 21, the cryptocurrency surged over 6%, climbing from $88,610 to $94,100. This rally occurred after U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins emphasized the establishment of new regulatory frameworks for digital assets, which many see as a positive step for the industry.
Additionally, Bitcoin Exchange-Traded Funds (ETFs) experienced a significant influx of capital, with $912.7 million in net inflows recorded in a single day, the highest since January. This suggests continued institutional interest in Bitcoin despite the broader market concerns.
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