In a shocking twist, Bitcoin (BTC), the undisputed king of cryptocurrencies, has plunged to levels not seen since the early days of 2023. <\/span><\/p>\n The battle-hardened Bitcoin bulls have suffered another crushing defeat, leaving investors on edge, anxiously pondering whether the dreaded sub $20,000 abyss will haunt them again.<\/span><\/p>\n With relentless uncertainty gripping the market, the burning question lingers: Has Bitcoin truly hit rock bottom, or is BTC in for an even darker descent?<\/span><\/p>\n According to Mike McGlone, Bloomberg\u2019s Senior Macro Strategist, Bitcoin\u2019s current trajectory bears an uncanny resemblance to the US stock market crash of 1930.\u00a0<\/span><\/p>\n In his <\/span>analysis<\/span><\/a>, McGlone highlights the clear rollover pattern and downward trend evident in Bitcoin\u2019s 100-week moving average (MA) graphic.\u00a0<\/span><\/p>\n The implications of this pattern, combined with the fundamental principle of \u201cnot going against\u201d the Federal Reserve (Fed) and the potential for reversion of one of history\u2019s best-performing assets, warrant serious consideration.<\/span><\/p>\n Adding to the potential headwinds for Bitcoin, US Treasury two-year notes yield nearly 5%, marking a historic high in the crypto realm. <\/span><\/p>\n Bitcoin, born in the aftermath of the 2008 financial crisis and during a period of highly low-interest rates, may now be facing an extended period of retracement.<\/span><\/p>\n According to Mcglone, in an era of near-zero and negative interest rates, the allure of a digital equivalent to gold can be captivating. However, the landscape is shifting as the world\u2019s safest securities offer approximately 10% total return over two years. This shift may pressure the prices of riskier assets, including Bitcoin.<\/span><\/p>\n The significance of the US Treasury two-year note\u2019s approximate 5% yield has historical parallels. It harkens back to before the financial crisis and the birth of Bitcoin. This correlation suggests potential headwinds for most risk assets.\u00a0<\/span><\/p>\n McGlone\u2019s analysis, focusing on the 100-week moving averages, reinforces the prevailing downward biases observed in Bitcoin, particularly when compared to the steepest Treasury yield competition witnessed in almost two decades.<\/span><\/p>\n Bitcoin\u2019s recent price trajectory has left many investors uncertain about its future, with some analysts drawing parallels to historical price crashes. Material Indicators co-founder Keith Alan has shared <\/span>insights <\/span><\/a>on the current market conditions.<\/span><\/p>\n Since the beginning of the bear market, Alan has been closely monitoring Bitcoin\u2019s price movements and sharing a chart that suggests the potential for retesting sub-$20,000 levels.\u00a0<\/span><\/p>\n While acknowledging the possibility of short-term scalping opportunities, Alan advises caution and limited exposure to preserve capital for what he believes could be a generational buying opportunity. <\/span>Notably, Alan emphasizes that he does not believe the bottom has been reached for Bitcoin.\u00a0<\/span><\/p>\n The chart highlights various downrange levels, showcasing Alan\u2019s belief in the potential for further downside movement.\u00a0<\/span><\/p>\n As depicted in Alan\u2019s chart, the Bitcoin market faces a critical juncture where the strength of support at $25,000 is crucial for the bullish case in the near term. Failure to hold this level could lead to a revisit of the December 2017 bull market peak at $19,800.<\/span><\/p>\n Adding to concerns for Bitcoin, there is the possibility of continuing the downside momentum, potentially reaching a four-year low around the June 2019 bull market top of $13,800. This scenario would catch many bulls off guard, especially considering the prevailing belief throughout 2023 that the crypto winter was ending.<\/span><\/p>\nBitcoin Path Aligned With 1930 Stock Market Crash<\/span><\/h2>\n
Analyst Warns Of Potential Sub-$20,000 Levels<\/span><\/h2>\n
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