Bloomberg senior commodities strategist Mike McGlone has the latest on “Fighting the Fed” bitcoin shared his analysis.
The analyst stated that Bitcoin was rejected from a strong resistance and experienced a reversal movement similar to that in bear markets.
Stating that the pressure of the FED on the markets was felt in 2022 and that this situation continued as of the first quarter of 2023, the analyst said, is the bottom formed with the latest rise in Bitcoin a real bottom? or a sharp leap that feeds the bears? He thinks that it is necessary to be skeptical about it.
The analyst’s statements are as follows:
“Don’t fight the Fed”
FED was the dominant wind on the markets in 2022. It continues to be so in the 1st quarter.
Bitcoin has had a decent rebound, which is typical in bear markets.
However, it may be rolling back from strong resistance.
Our chart shows by a large margin the cause of the main disruption faced by most risk assets – federal funds rates – since the end of 2021:
Most markets are at lower levels than they were a year ago.
Whether this is a bottom or a sharp jump that feeds the bears is a big question.
The trajectory remains bearish, as Bitcoin’s 52-week moving average shows.
We think more tactically oriented traders will focus on selling, and accordingly it may take some time for buy-and-hold traders to gain the upper hand. “
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