Bloomberg analyst issues warning to traders, saying Bitcoin (BTC) is about to make a big move.
Mike McGlone, senior macro strategist at Bloomberg Intelligence tell his 61,300 followers on social media platform
“Risks of a short cleaning on the morning of October 16.
Bitcoin cage narrows between $25,000 and $29,000; ramifications of escapes –
Stuck between its 50- and 100-week moving averages with annual volatility falling to a new low, Bitcoin is about as coiled as it gets.
According to McGlone, BTC is about to make a major move – the only question is direction. He says BTC is more likely to collapse to the downside than to rally.
“It’s a question of direction, and my bias is to the downside, as well as a major liquidity measure: one-year federal funds futures…
Which is usually a prerequisite for this liquidity indicator to become positive, it is Bitcoin fall first. If the highly speculative market is traded 24/7 crypto leading indicator may hold above its decreasing average over 100 weeks, this could suggest risk appetite, inflation and more restraint from central banks.
This may be part of the deficit-lose for risky assets with Fed bias continues to tighten at late stage business cycle trends. Show a broad market complacency, the volatility of Bitcoin compared to the 500 is around 2.8x through October 13 and above Q4 2020 low of 1.9x.”
In a recent interview with crypto influencer Scott Melker, the strategist reiterates his position.
“Bitcoin rises in liquidity and does well when the stock market does well, and then it goes down the other way. So here’s what I think is going to happen: They’re both going to fall. »
BTC is worth $28,475 at the time of writing.