Bloomberg analyst Mike McGlone sees the latest headwind behind Bitcoin could hit $40,000. However, he is skeptical that the upcoming recession in the US will support cryptocurrencies…
Bitcoin bulls try to protect $30,000 as support
The leading crypto climbed above $31,000 with the sudden rally of June 15 to June 23. After a long hiatus, it’s printing green over 15% weekly earnings. The final run led to a sudden $165 million liquidation for the bears. It is now being discussed whether it will return to $20,000 or climb to $40,000 after that.
At this point, Bloomberg analyst Mike McGlone argues that the launch of several Bitcoin ETFs, including the BlackRock spot Bitcoin ETF, will not protect Bitcoin from facing the first recession, potential stock bear market and hawkish central banks in the US. In his current analysis, he discussed whether Bitcoin will go to $20,000 or $40,000 in the light of these developments.
Bitcoin $20,000 or $40,000? Facing the #Fed, Recession, Nasdaq – Potential launch of US ETFs won't shield #Bitcoin from facing its first US #recession, a potential equity bear market and vigilant central banks. Lessons of risk-assets vs. negative liquidity & economic contraction pic.twitter.com/plM5c5ihsg
— Mike McGlone (@mikemcglone11) June 23, 2023
Meanwhile, investors are questioning whether Bitcoin has the strength to trade above the $30,000 resistance due to bearish pressure from a potential recession and increased central bank activity aimed at reducing capital demand. In response to the recent Bitcoin ETF-inspired rally, McGlone said:
We believe physical Bitcoin ETFs in the US are just a matter of time. BlackRock’s application for such a fund launch seems to hastened this process, but a launch may not come in 2023 and Bloomberg Economics expects the US to head into recession in the coming months.
Rate rise, weak US dollar, top Nasdaq biggest hurdles
Mike McGlone talked about some of the obstacles that Bitcoin will face on its journey to $ 40,000. The experienced analyst draws attention to the continuing interest rate hikes of the US Federal Reserve this year. As we reported as Kriptokoin.com, President Jerome Powell said on June 14 that they would struggle to reduce inflation to 2 percent.
Along with these, McGlone says weak US dollar liquidity and the peaking Nasdaq 100 stock index are the biggest obstacles to the upcoming Bitcoin rally. In their analysis, he wrote, “Even as risk markets bounced on hopes of a moderate US recession and Fed easing, the fact that liquidity pulls still persist as most central banks continue to tighten in June, it could be a headwind.”
Meanwhile, Caleb Franzen, founder of Cubic Analytics, is heavily supportive of McGlone’s analytics. Additionally, it highlights the main resistance zone for Bitcoin between $31,000 and $35,000.
Franzen said, “This is the next major pincer area for Bitcoin based on the price structure over the last two years. I need to show an uptrend as I enter this red zone. But here we must acknowledge the potential threat of resistance. Probably best not to chase here. So sit back and enjoy the show,” he wrote.
This is the next key grapple zone for #Bitcoin based on price structure over the past two years. I have to lean bullish going into this red zone, but we must acknowledge the threat of potential resistance here.
Probably best not to chase here, so just sit back & enjoy the show. pic.twitter.com/TdxYvV3K9r
— Caleb Franzen (@CalebFranzen) June 23, 2023
Finally, over 145,000 BTC options worth $4.5 billion are about to expire on June 30. However, analysts remain bullish on BTC price due to the overall short-term technical advantage. Crypto critic Peter Schiff, on the other hand, interpreted the last run in the market as the ‘end of the rally’.
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