Bitcoin is in trouble and could fall more than 70%, analyst Bloomberg warns

In his latest analysis, published on Monday (22), Mike McGlone points out that Bitcoin could be in trouble as the Fed continues to pursue aggressive monetary policy even as banks fail.

Bitcoin resistance is near $30,000, according to Bloomberg analyst. Support is way off, in the $7,000 range, a price not seen since 2019.

Another point that may reinforce McGlone’s pessimism is memecoins. In April, the analyst stated that Dogecoin and Shiba Inu worth billions was a bad sign. Weeks later, PEPE appeared, yet another proof of the market’s excesses.

Mike McGlone is concerned about Bitcoin

Mike McGlone has a simple motto: Don’t fight the Fed. According to the Bloomberg analyst, the US central bank is as aggressive as ever and the early recovery of the markets could be a pitfall.

“The fact that the Federal Reserve kept raising interest rates [de juros] in the 1st half, falling commodity and producer prices, despite a bank run, may predict possible deflation for risky assets”wrote McGlone.

“Bitcoin and copper spike vs. stock market recovery appears unsustainable trajectory.”

In addition to Bitcoin having major resistance at $30,000, McGlone points out that support is way off at $7,000. To be more precise, your chart indicates that the support is at $7,366.

In other words, Bitcoin could fall by more than 70%reaching levels worse than those following the bankruptcy of FTX and several other industry giants.

All-in another tweet, published last week, McGlone questioned whether Bitcoin could be the “canary in the coal mine”. That is, the decline in the month of May is a warning for other markets, such as stocks.

Bulls believe in a new rally

On the other hand, bulls believe that Bitcoin will continue to rise in 2023 and could see another rally as the US is forced to inject liquidity to accelerate the already troubled economy.

According to Raoul Pal, formerly of Goldman Sachs, both cryptocurrencies and technology stocks will see a huge price increase. In simple terms, emphasizes that the money printer will make noise.

Finally, both McGlone and Pal are two great market analysts, but at this point, opinions diverge. Therefore, this could explain BTC’s flatness in recent days.

Source: Live Coins

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