[ccpw id="39382"]

HomeCrypto NewsMarketBloomberg Intelligence Analyst Warns That Bitcoin Q1 Bounce Favors "Tactical Shorts"

Bloomberg Intelligence Analyst Warns That Bitcoin Q1 Bounce Favors “Tactical Shorts”


Written By:

Despite this, the analyst remains bullish on the asset long-term.

Bloomberg Intelligence Senior Macro Strategist Mike McGlone has cautioned that Bitcoin’s latest bounce to resistance at $25k may favor what he describes as “tactical shorts.”

McGlone expressed this in a tweet today, noting that the asset was battling the Fed’s tightening policy and has ventured into previously unexplored economic territory. As highlighted by the analyst, for the first time in its history, the asset’s 50-week moving average has crossed below the 200-week moving average. However, despite this, the analyst reveals that he maintains a long-term bullish outlook on Bitcoin.

- Advertisement -

It is worth noting that investors still perceive Bitcoin as a risk asset. Consequently, the market remains susceptible to reactions from Fed tightening policies which could make investors risk-averse. In a note attached to his tweet, McGlone taps the $25k price point as a significant level for Bitcoin. According to the analyst, if the asset can hold above it, it will represent a market rebound for crypto and other equity markets.

Recall that the crypto markets rallied as the Fed raised borrowing rates by an expected 0.25%  at the beginning of the month. Notably, all eyes will be on the Federal Open Market Committee minutes scheduled for release tomorrow. The markets could react negatively or positively depending on how close the Fed was to a 0.5% rate hike decision.

The rate currently sits at about 4.75%. However, Fed officials have maintained that raising the benchmark above 5% will be necessary to bring inflation down to 2%. No doubt the apex bank has been encouraged by strong employment numbers dispelling immediate recession fears.

- Advertisement -

Meanwhile, the Bloomberg analyst is not alone in his view that Bitcoin will likely see a price decline in the short term. Seasoned pseudonymous technical analyst Duo Nine recently indicated that the asset had formed an ascending triangle chart pattern. While technical analysts generally view this as a continuation pattern, the direction of the price is often dictated by the direction of the breakout. The price appears to be breaking below support, signaling a potential price decline.

Fellow prominent crypto price chartist Ali Martinez noted today that traders are skeptical. Martinez revealed that approximately 53.54% of open Binance positions are short. 

Nonetheless, the analyst asserted last Friday that the asset has strong support between $21,700 and $23,700, where 1.60 million addresses bought over 1.32 million Bitcoin per IntoTheBlock data.

Recall that the asset rallied as much as 12% last Thursday, buoyed by positive price action and sentiment on Binance’s legal worries in the United States. At press time, it is trading for $24,531.58, down 1.66% in the last 24 hours.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Okoya David
Okoya David
Okoya David Kio is a crypto enthusiast passionate about understanding what makes the nascent market tick. When he's not pondering about cryptocurrencies, you might find him in a BP debate room trying to proffer solutions to age-old societal problems.

More from Author

Latest Stories