Bitcoin to face more pain, says Bloomberg’s senior macro strategist.

The Senior Macro Strategist of Bloomberg, Mike McGlone, predicts a negative forecast for Bitcoin (BTC) and the overall cryptocurrency market in his latest report called “Crypto Outlook, June 2023”. Although the prices may rebound in 2023, the risks for the Bloomberg Galaxy Crypto Index remain downward. McGlone argues that cryptocurrencies are facing several headwinds, including a potential US recession, a potential stock market decline, vigilant central banks, and high competition for interest rates. The speculative excesses that led to the 2021 peak combined with these factors suggest that the outlook for the crypto market is bearish.

McGlone points out that Bitcoin weakening in May, along with copper and equities in China, is unusual compared to the stalwart Nasdaq 100 Stock Index. Bitcoin, often referred to as digital gold due to its perceived status as a store of value, may not be able to outperform the traditional safe-haven asset in a US economic contraction. This is because Bitcoin is still relatively young compared to gold, which has been used as a store of value for thousands of years. McGlone suggests that investors may be more likely to flock to gold during times of economic uncertainty, rather than newer assets like Bitcoin.

Furthermore, plunging commodities, producer prices, and bank deposits may serve as deflationary omens of the lags to Federal Reserve tightening. These factors suggest that the risks for the Bloomberg Galaxy Crypto Index are tilted downward, and investors should be cautious. McGlone highlighted the historical patterns of boom and bust in Bitcoin, which are closely tied to liquidity. According to McGlone, Bitcoin’s current price level of around $27,000 may be at risk of reversion, considering that it was only $7,000 at the end of 2019 before the massive liquidity pump in 2020.

On the other hand, Crypto Con, a well-known crypto analyst, has recently expressed his continued bullishness on Bitcoin, citing the Pi Cycle Top indicator as evidence of the cryptocurrency’s potential for a continued uptrend. The Yellow 111days Moving Average (MA) has started to uptick, indicating that Bitcoin is experiencing a positive trend. Additionally, Bitcoin has been retesting the 111DMA line as support, rather than continuing on a parabolic trajectory, which is typically a sign of a market top. The Pi Cycle Top indicator measures the relationship between the 111DMA and the 350DMA, and when the two lines cross, it can suggest a potential market top or bottom. The fact that the Yellow 111DMA is showing an uptick suggests that Bitcoin may be headed for a market bottom, which is a bullish sign for investors.

At the time of writing, Bitcoin is trading at $27,000, and its price has remained relatively stable over the past 24 hours. The article includes images of charts and graphs to explain the analysis of Bitcoin’s performance in the market.

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