According to historical data, the price shows a behavior similar to the 2018 market crash. Many are afraid of the tightening policy of the Fed, but McGlone believes that interest rates will not rise further.
Commodity strategist Mike McGlone recently predicted a rise in the value of Bitcoin (BTC) for the second half of 2022. That suggests that the crypto asset will rebound after nearly eight months of declining prices.
McGlone shared his analysis with views on the market on his Twitter account. According to Bloomberg, a basket of the leading cryptocurrencies shows a behavior similar to the 2018 market crash.
In addition, the discount of Bitcoin to its 50 and 100-week moving averages is similar to previous foundations. Therefore, the risk versus reward tilts toward receptive investors in the second half of 2022.
The Price of Bitcoin May Rise Considerably in the Second Half
McGlone thinks Bitcoin is undergoing a cycle similar to the bursting of the Internet bubble in the early 2000s. He stated that overvalued projects with weak fundamentals must leave the crypto market before a significant long-term trend reversal occurs.
The commodity analyst believes that the price of Bitcoin has already bottomed out. He said a significant bullish movement would follow, as in the first half of 2019 after the 2018 market crash.
According to the expert, Bitcoin could be one of the biggest bullish markets at a low price to start the second half. He also warned that the cryptocurrency could fail to become redundant, like crude oil. However, he highlighted that the adoption of Bitcoin will likely continue to rise.
Mike McGlone Is Not Afraid of the Tightening Policy of the Fed
McGlone is skeptical that interest rates will continue to rise, while many are afraid of the tightening policy of the Fed. He thinks the American central bank may have to reverse the policy on interest rates and reduce rates again if stock markets struggle. He shared a chart showing the S&P 500 Index at a point where reversals have occurred historically.
He predicted that the Fed might need to meet to hold further meetings for a break in the shaken US stock market to occur.
The price of BTC remains well below the all-time high of USD 69,000 it reached on November 10th, 2021. Despite having a lengthier history than other cryptocurrencies, the volatility of the crypto asset remains very high while its price has barely held up. It has lost USD 45,000 over the last six months.
Bitcoin is trading at around USD 21,637 and has accumulated an 11.5% gain over the last week. While its trading volume is above USD 47.78 billion, its market capitalization is about USD 413.03 billion, according to CoinGecko.
By Alexander Salazar
