Bloomberg says Bitcoin price is bound for a bullish breakout under one condition
|- Bitcoin price is set to rebound according to a senior commodity strategist at Bloomberg, Mike McGlone.
- McGlone has identified similarities between the current Bitcoin price trend and bottom of 2018.
- The analyst notes that Bitcoin risk vs. reward is tilting toward responsive investors, suggesting a strong rebound in the asset.
- KuCoin’s Johnny Lyu revealed inaccurate data feeds and mislabeled on-chain wallets led investors to see massive Bitcoin outflows.
Bitcoin price is poised on the starting blockchains for a recovery sprint higher, according to analysts at Bloomberg, who have issued a bullish call for Bitcoin price to rebound in 2022. With a reduction in mining difficulty from the all time highs recently reached, leading to many mid-level miners shutting up shop, the lead crypto is now becoming economical to mine again, and commodity strategists believe the asset has bullish potential..
Also read: This is how easy you can get hacked and get your Bitcoin stolen
Bitcoin price looking bullish says Bloomberg’s McGlone
Bitcoin price is ready to make a comeback, according to Mike McGlone, senior commodity strategist at Bloomberg. The analyst has identified similarities between the current Bitcoin market and the bottom of 2018. McGlone believes the second half of 2022 could be bullish for Bitcoin due to the appearance of positive signs on charts of the asset’s metrics.
The Bloomberg Galaxy Crypto Index (BGCI), a capped market capitalization-weighted index designed to measure the performance of the largest digital assets traded in USD, showed bullish signs in the 50-week and 100-week moving averages of Bitcoin price.
Just as the bear market of 2018 gave way to Bitcoin price rebound in the first half of 2019, McGlone expects BTC to witness a massive comeback in the second half of 2022.
Bitcoin Bull, Crude Oil Bear vs. the Stock Market
McGlone believes Bitcoin could be on the cusp of one of the greatest bull markets in history. The fact that the asset is currently available at relatively discounted prices means Bitcoin adoption is more likely to continue rising, rather than becoming redundant, argues the analyst.
Bitcoin bear market a response to US Fed’s hawkish monetary policy?
McGlone believes the United States Federal Reserve’s monetary policy and a series of interest rate hikes is responsible in part for the Bitcoin bear market. Bitcoin price drop is a response to rising interest rates in the economy. Among other macro factors such as global cryptocurrency regulation and war in Ukraine, Bitcoin suffered the largest blow from the Fed’s monetary policy tightening.
Nathaniel Whittemore, Host of the podcast Breakdown NLW argues that the Dollar Index (DXY) recently hit its highest level since 2002. DXY measures the value of the dollar against a basket of currencies. DXY dominance has negatively impacted crypto cryptocurrency valuations across the board. This could be considered partially responsible for Bitcoin’s recent price slump.
KuCoin CEO sheds light on inaccurate data feeds
Johnny Lyu, founder and CEO of KuCoin shared insights on how inaccurate data feeds and mislabeled on-chain wallets led investors to believe there was a massive Bitcoin outflow on his exchange platform, leading to a run on KuCoin as investors feared it might be going bust.
Lyu explained,
Most on-chain tracking tools can't present the exact balance of exchanges because many exchange addresses are not labeled on the blockchain. As a result, many online tracking tools, including Glassnode, miscalculated the balance of KuCoin (and maybe other exchanges too).
While most exchange addresses are tagged on popular blockchain scanning tools, some are not, KuCoin addresses are still not labeled and many data feeds share an inaccurate picture of Bitcoin on-chain analytics.
Amidst rising number of crypto lenders and VCs coming out as insolvent in the bear market. Crypto Twitter was rife with speculation that KuCoin is likely insolvent and traders have started urgently withdrawing funds. Lyu has shed light on the inaccurate on-chain data and addressed the insolvency rumors. He claims KuCoin is not insolvent and simply fell victim to rumors on crypto Twitter.
This is how you can trade Bitcoin despite market turmoil
Analysts at FXStreet have evaluated the Bitcoin price trend and identified how traders can make a profit despite market turmoil. For key price levels, check this video:
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