Bloomberg analyst Mike McGlone said bitcoin could see a bullish rally in the second half of the year into an “epic bull market” as the market moves in a similar fashion to the bear market trough in 2018.
Mike McGlone, senior commodities strategist at Bloomberg Intelligence, noted that he sees positivity in data from the Bloomberg Galaxy Crypto Index and the 50-week and 100-week moving averages for bitcoin prices signs.
According to Mike McGlone, the current indicators are showing similar signs to the bear market bottom of 2018, while Bitcoin saw a strong rally in the first half of 2019:
With the Bloomberg Galaxy Crypto Index seeing a similar decline to the 2018 bottom, and Bitcoin’s discount to its 50-week and 100-week moving averages similar to past bases, risk-reward ratios could be positive for a responsive investment in the second half of the year inclined.
The cryptocurrency winter of 2018 was a rough time for Bitcoin, when it plummeted from the $16,000 region in January to a bottom of $3,200 in mid-December, according to CoinGecko. But after a market carnage, Bitcoin surged to $13,000 in late June 2019.
Mike McGlone went on to predict that Bitcoin will enter an “epic bull market” in the second half of the year, otherwise, it means that the cryptocurrency is a failed experiment, and investors are scared to flee. However, he is more optimistic that Bitcoin adoption will continue to rise.
#Bitcoin could be one of the greatest bull markets in history at a relatively discounted price to start 2H. Or the crypto may be a failing experiment in the process of being made redundant, like #crudeoil. Our bias is Bitcoin adoption is more likely to continue rising pic.twitter.com/qtLRR6isXF— Mike McGlone (@mikemcglone11) July 6, 2022
The cryptocurrency market is going through a “great reshuffle,” Mike McGlone said, similar to the dot-com bubble burst in the early 2000s, when many companies were struggling, but it also paved the way for top companies like Amazon and eBay to grow level the road.
Throughout the first half of the year, Bitcoin and the overall cryptocurrency market have been affected by several macro factors such as the Russian-Ukrainian war, global regulatory policies, and unemployment. At the same time, the implosion of cryptocurrency projects and companies has also led to a more bearish market sentiment.
In early June, Mike McGlone pointed out that if the stock market continues to decline at a rate similar to the first half of the year, June may be the last time the Fed raises interest rates, and then as investors re-enter the market, all assets are expected to usher in a rebound.