Bitcoin analyst – ‘Risk v. Rewards slope towards …’
Mike McGlonesenior product strategist at Bloombergpredicts an increase in the price of Bitcoin in the second half of 2022.
July 6, McGlone tweeted his observations, notes that Bloomberg Galaxy Crypto Index (BGCI) and 50-week and 100-week moving averages for BTC showed encouraging trends. He claimed that the current indicators are similar to those from the bottom of the bear market in 2018, which came before a robust improvement in the first half of 2019.
He said,
“With the Bloomberg Galaxy Crypto Index approaching a similar decline as the 2018 bottom and Bitcoin’s discount to its 50- and 100-week moving averages similar to previous foundations, the risk vs. reward of responsive investors in 2H is tilting.”
Like the Internet bubble?
McGlone drew a parallel between the current state of the cryptocurrency market and the Internet boom of the early 2000s. According to the expert, a similar cycle is underway, one in which overvalued projects are removed from the market before the market reverses its course and resumes its long-term upward trend.
In order to have a comprehensive understanding of market performance as a whole, BCGI is designed to evaluate the performance of key cryptocurrencies. Moving averages are used to calculate the average price of an asset over a certain period, such as 50 or 100 days.
Bitcoin has lost too much
According to data from CryptoCompare, the world’s largest cryptocurrency has lost over 58% of its value in the second quarter of 2022. From $ 45,524 at the beginning of the second quarter, Bitcoin fell to just under $ 19,000 on the last day of June.
Since losing 68.2% of its value in the third quarter of 2011, this was Bitcoin’s worst quarterly result. According to data from CoinMetrics, June was the worst month since it first became available on stock exchanges in 2010, when it reached its peak.
These low numbers have made many cryptanalysts skeptical of Bitcoin. Some expect more bearish trends soon.
Mohnish Pabrai, a student of financial guru Warren Buffett, took a shot at cryptocurrencies amid all the market turmoil.
Despite the market’s carnage, he warned that Bitcoin and altcoins are still facing their worst days. He warned cryptocurrency investors in an interview with CNBC that the value of their holdings of digital assets would “erode to nothing over time.”
Many industry analysts believe that Bitcoin has not yet bottomed out and predict that prices will fall significantly more in the coming weeks or months. According to Edward Moya, the extent of the decline in cryptocurrency prices will depend on “whether the stock market hits a bottom and whether no significant crypto company goes into liquidation.”
Several variables, including escalating geopolitical turmoil and changes in US monetary policy, will increase short-term volatility.
