It’s just been revealed that an important Bloomberg analyst is addressing the price movement of Bitcoin these days. Check out the latest reports below.
At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $21,183.
Bitcoin price analysis
Bloomberg Intelligence senior macro strategist Mike McGlone said recently that Bitcoin (BTC) is forming a bottom similar to 2018. It’s important to note the fact that now this is happening under very different macroeconomic conditions.
The online publication Daily Hodl notes, in a new interview with Scott Melker, McGlone made a comparison between Bitcoin’s recent rally into the $20,000 range to BTC’s bottom formation in 2018 at the $5,000 price level.
“We’re still pulling liquidity from the market on a global basis – an historical, unprecedented basis – for good reasons. And if equities go higher, if risk assets go higher, this liquidity is more likely to remain constrained from central banks.”
He continued and said the following:
“So what I’m showing you is a chart, we see this potential island bottom developing around $20,000, the same way it did around $5,000 back in 2018. The big difference is what I show you in white is the federal fund futures. Back then, the Fed already started easing, and we held the bottom and broke out higher, and then we had that issue in 2019.”
He said that there is one indication that Bitcoin’s rally is not going to continue is that the NASDAQ is likely to dip below its 200-week moving average.
The NASDAQ was reportedly strongly correlated with the performance of Bitcoin in the past year.
“This is the NASDAQ. The NASDAQ is at its 200-week moving average. The 200-week moving average in the history of the NASDAQ, since it can be calculated, we only broke through that level three times. And every single time, the Fed was easing. The last good example was 2008. Fed was easing aggressively.”