Bloomberg Senior Commodity Strategist Mike McGlone predicts a Bitcoin price increase in the second half of 2022. On July 6, he tweeted his findings, verifying that the BGCI (Bloomberg Galaxy Crypto Index) and BTC’s 50- and 100-week moving averages displayed excellent tendencies.
He noted that the current indicators are similar to those witnessed during the 2018 bear market bottom, which occurred before to a strong recovery in the first half of 2019. Mike stated that such observations had the risk vs. reward titling consumers to be cautious in 2022 H2.
Is the Internet Bubble being imitated?
McGlone likened the current state of the cryptocurrency business to the early 20222 internet boom. According to the researcher, the crypto world goes through similar cycles in which the market removes overvalued enterprises before reverting to long-term upward trends.
Meanwhile, the BCGI computes performance by major cryptocurrencies to ensure a comprehensive knowledge of overall economic trends. Moving averages (MAs) assist in estimating the average asset price for a specific duration, such as 20, 50, or 100 days.
BTC has suffered a significant loss.
According to CryptoCompare data, the main digital coin lost more than 58% during the second quarter of 2022. Bitcoin began Q2 trading at $45,524 before falling below $19,000 as the month closed.
Bitcoin had its worst quarterly run since 2011 Q3, when it lost around 68.2%. Furthermore, CoinMetrics data shows that June was the worst month for BTC since its debut on cryptocurrency exchanges in 2010.
Because of the deteriorating data, most cryptocurrency professionals are wary of BTC. Some expect more bearish movement in the coming sessions. Mohnish Pabrai, a student of Warren Buffet, reflected on the upheaval in the cryptocurrency market.
He foresaw that the darkest days for Bitcoin and other cryptocurrencies would come during the chaos on the stock market. During the CNBC interview, he warned market participants that their holdings will soon crash to nothing.
Most industry analysts believe that BTC has not yet reached its bottom and predict further significant declines over the next few weeks or months. According to Edward Moya, the stock market bottoming and the absence of any crypto firms going out of business would determine how severe the crypto market crash would be.
In the meanwhile, a number of factors, including ongoing geopolitical unrest, US financial policy, and recession fears, will cause sharp increases in price fluctuations in the near future.