According to Binance TR data, while Bitcoin (BTC) experienced a rapid recovery above $93,000, altcoins also experienced significant increases.
However, Bloomberg analyst Mike McGlone stated that this rise is temporary and will eventually decline. The analyst’s bearish forecast included not only Bitcoin but also the largest memecoin, Dogecoin. Comparing the movements of Bitcoin and Dogecoin (DOGE), the analyst stated that both followed almost the same path.
McGlone noted that, surprisingly, the movements of BTC and DOGE have been very similar over the past year. The expert argued that although the current situation looks good for Bitcoin and Dogecoin and the trend line holds support, the recession that never comes will eventually come and when the US stock markets fall, the prices will eventually break downward and pull the cryptocurrency market down.
McGlone argued that the recession was only postponed, not prevented, and noted that when a recession occurs, risky assets such as Bitcoin and Dogecoin could experience sharp declines. McGlone said that while the recent rally is exciting, he believes it is not a sign of a new bull market, but simply a spike in a long-term bear market.
“Is the recent rally a bear market bounce or a new bull? My guess is the former. Bitcoin/gold cross and Dogecoin have the same chart structure. Trendline support is holding, but I expect prices to eventually break out as the US stock market falls due to a recession that is not coming in 2023.”
The Bloomberg analyst recently reiterated his view that Bitcoin and other cryptocurrencies have a strong correlation with the stock market and leading indices S&P 500, Nasdaq and Dow Jones.
https://twittter.com/mikemcglone11/status/1914977694132879583
*This is not investment advice.