Bitcoin rally may be short-lived, warns Bloomberg analyst
McGlone cautions that unless broader conditions change, the current rally may be short-lived
The recent rally in Bitcoin and Dogecoin may be offering crypto investors false hope, according to Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence.
While crypto prices have surged in recent days, McGlone cautions that the underlying signals point to a broader bearish trend and growing macroeconomic risk.
Two very different coins, one concerning pattern
Bitcoin and Dogecoin are often seen as polar opposites — the former a store of value, the latter a meme-based asset. However, McGlone notes an unusual correlation: their price movements over the past year have followed remarkably similar trajectories. Both assets surged at the end of 2023, peaked in early 2024, and have since traded sideways.
According to McGlone, this synchronicity isn't just a coincidence. It could be an early warning sign that both cryptocurrencies are responding to the same weakening fundamentals and macroeconomic pressures.
Support Holding — For Now
Bitcoin’s ratio to gold and Dogecoin’s broader price action are currently holding at long-term upward trendlines. While this technical support has so far prevented deeper losses, McGlone argues it’s unlikely to hold in the face of mounting economic stress.
“We’re not seeing the start of a bull market here,” McGlone warned. “This bounce looks more like a pause within a longer-term downtrend.”
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McGlone’s biggest concern lies not in the charts, but in the economy. He points to persistent recession risks in the U.S. that could severely impact high-risk assets like Bitcoin and Dogecoin. Though a downturn did not materialize in 2023, McGlone believes it is still on the horizon — and that crypto may be among the first to feel the shock.
Meanwhile, Dogecoin has jumped nearly 10% in 24 hours, now hovering near $0.1827. Analysts highlight a key resistance at $0.186, which could determine the meme coin’s next move. However, the 4-hour RSI above 83 suggests a potential pullback is near.
Bitcoin, too, has seen a 6% gain, breaking above the $94,000 mark. But McGlone cautions that unless broader conditions change, the current rally may be short-lived.
Conclusion
While bullish sentiment is growing in crypto markets, Bloomberg’s McGlone urges caution. With recession risks mounting and key resistance levels in play, traders may want to brace for another round of volatility.
Earlier we informed surprise crypto rally liquidates $639M in short positions.
