• Bloomberg analyst Mike McGlone has issued a warning, saying that Bitcoin (BTC) may have turned too hot within a downtrend.
• McGlone believes the crypto king’s strong performance in the first half of the year is in a poor technical position and could be seen as an overextended bounce within a macro bear winter.
• The strategist further suggests that the Federal Reserve’s tightening of interest rates despite a bank run may be signaling a warning to cryptos and copper.
Bloomberg Analyst Issues Warning on BTC
Bloomberg Intelligence’s senior macro strategist Mike McGlone has warned his 58,000 Twitter followers that Bitcoin (BTC) may have turned too hot within its current downtrend. Despite the crypto’s strong performance in the first half of this year, McGlone believes it is in a poor technical position.
Macro Bear Winter Ahead for BTC?
The market strategist speculates that Bitcoin’s rally above $30,000 this year could be seen as an overextended bounce within what he calls “a macro bear winter”. He also highlights how its 52-week moving average is down sloping and suggests that it may need to respect this trend going forward.
Fed Tightening Signals Warning?
McGlone further suggests that the Federal Reserve’s tightening of interest rates despite a bank run may be signaling a warning to cryptos and copper. He believes this could lead to an ugly second half of 2021 for both equities and crypto assets alike.
Current Price Action
At time of writing, Bitcoin is trading for $25,849, down over 2% in the last 24 hours.
Conclusion
Investors should do their own due diligence before making any high-risk investments in Bitcoin or other digital assets.