A Bloomberg analyst is warning traders, saying Bitcoin (BTC) is about to make a big move.
Mike McGlone, senior macro strategist at Bloomberg Intelligence tells According to its 61,300 followers on the social media platform
“Risks of short cleaning, the morning of October 16.
Bitcoin’s cage between $25,000 and $29,000; consequences of an outbreak –
Bitcoin is stuck between its 50- and 100-week moving averages as annual volatility falls to a new low.
According to McGlone, BTC is about to take a big step – the only question is the direction. He says BTC is more likely to crash than recover.
“It’s a matter of direction, and my bias is to the downside, along with a top measure of liquidity: one-year Fed fund futures…
Which was usually a condition Bitcoin is the reason this liquidity indicator turns positive fall first. If it trades 24/7, highly speculative crypto leading indicator may remain above its level a downward sloping 100-week average could predict this risk control, inflation and more restraint from the central bank.
This can be part of the lose-lose process for risky assets the Fed preference continues to tighten at a late stage economic cycle tendencies. Show broad market complacency, Bitcoin volatility versus the S&P 500 is around 2.8x through Oct 13 and above the 1.9x low of Q4 2020.”
In a recent interview with crypto influencer Scott Melker, the strategist repeats his position.
“Bitco is rising in liquidity and doing well when the stock market is doing well, and then it falls the other way. So this is what I think will happen: they will both go down.”
BTC is worth $28,475 at the time of writing.
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