According to Bloomberg Intelligence analyst Mike McGlone, Bitcoin (BTC) seems to be at its most overbought position since the December 2017 all-time high level. Let’s find out more in today’s blockchain news that we have on our website.
McGlone published an article just two days ago saying that Bitcoin’s global strength indicator (GTI) shows that the number one cryptocurrency has not been in this position a long time ago. The indicator shows that Bitcoin hasn’t been this overbought since the record price in 2017 when it reached $20,000. The Bloomberg article also states that in the past, patterns like these have been followed by months of value downturns.
According to McGlone, market growth over the past few months happened due to the low volatility and long-term price compression. This caused the price to ‘’loosen up.’’ He also stated that he expects a similar downturn movement in the next period after the recent growth:
“Now it’s a question of duration and I suspect when you have such a massive bubble, you’ll always have an overhang of people who need to sell.”
McGlone quoted David Tawil in the article, who is the president at ProChain Capital crypto hedge fund. Tawil stated previously that he expects the market to continue the downward trend. However, he admitted that it’s good to see an upward movement by saying:
“Certainly, an investor would much rather see a gradual rise with constant floors in terms of downside being established, as opposed to a very, very quick run-up. It could easily be easy come, easy go.”
Both of the analysts seem to be disagreeing with the opinion of Thomas Lee- the co-founder of Fundstrat Global Advisors. As previously reported, Lee believes that Bitcoin is back on the bullish track. Lee stated that Bitcoin manages to break the 200-day moving average.
In the meantime, the author Peter Brandt disagreed with McGlone saying that he will not be surprised if Bitcoin enters another parabolic phase.
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