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Key Takeaways:
- A Bloomberg analyst claimed Bitcoin price might drop below $25,000 due to macro headwinds.
- BTC price dropped below $27,000.
- The crypto token has formed a bullish technical pattern.
NEW DELHI (CoinChapter.com) — Bitcoin (BTC) price risks dropping below $25,000 due to macro headwinds from the US Federal Reserve, according to Bloomberg Intelligence’s senior macro strategist Mike McGlone.
The analyst shared his views in a YouTube interview with the ‘Understanding Macro‘ channel. McGlone claimed the global economy was on the verge of the worst downturn since most central banks continued hiking interest rates and withdrawing liquidity while most economies faced recession risks.
When asked if the recession could force the BTC price to drop to $15,000, McGlone first remarked that he remained bullish for the token in the long term. The Bloomberg analyst also highlighted some features that make Bitcoin popular with traders, including decentralization, ease of trading, etc.
But Fed Policies Could Hinder BTC Price Action
Furthermore, McGlone noted that Bitcoin price has gone up by 25,000 times since it first started trading in 2011. The rise in BTC price was “1,000 times as much as Amazon [stock prices] since it started trading at $1.”
However, the analyst stated that the Fed’s continued quantitative tightening is the “800-pound gorilla” that Bitcoin faces. A rate hike erodes investor interest in risk assets like stocks and cryptos since safer options like government bonds become more attractive with safer returns.
I think it’s [Bitcoin] at risk of dropping below $25,000 and taking everything risk with it.
Mike McGlone said
Moreover, McGlone predicted that Bitcoin would likely start trading “more like Gold and treasury bonds” in the future. Meanwhile, Morgan Creek Capital Management CEO Mark Yusko stated that a Bitcoin ETF getting the green light from the SEC could funnel $300 billion into the BTC market.
Yusko was talking in an interview with the Paul Barron Network.
BTC Price Forms Bullish Pattern
Bitcoin price has formed a bullish technical pattern called the ‘Ascending Triangle.’
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine if a breakout is strong.
Under ideal conditions, buyers would enter the market as the trendlines close the gap. As a result, the toke’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the triangle pattern pans out, BTC price could theoretically rise over 75% to reach near $46,600 before retreating.
Bitcoin Price Drops Below $27,000
Bitcoin price dropped below $27,000 on Sept. 21, two days after climbing above the price level. Bearish pressure near the 200-day EMA (green wave) and 50-day EMA (purple wave) dynamic resistance confluence rejected the token’s rally.
Bulls are defending the 20-day EMA (red wave), but the bearish pressure resulted in BTC price registering a minuscule 0.9% spike to form a daily high near $26,733 on Sept. 22.
Breaching the 20-day EMA could see BTC price plummet to the support near $25,730, near the ascending parallel channel Bitcoin is moving inside. However, failure of immediate support could cause the BTC price to test the support near $24,600.
However, breaking above the confluence resistance could help Bitcoin price rally to $27,600. Moreover, breaking and consolidating above the immediate resistance might help BTC price target the resistance near $29,000 before retreating.
The RSI for BTC remained neutral, with a score of 50.7 on the daily charts.
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