Bitcoin at most over bitten level since Record Bull Run: Bloomberg analyst

3 min read

Bitcoin (BTC) is at its most overbought level since the record highs in December 2017, Bloomberg Intelligence analyst Mike McGlone claimed in an article published on April 5.

According to the report, Bitcoin's GTI Global Strength Indicator shows that the currency has not been so overbought since the price approached its record peak of $ 20,000. Bloomberg also claims that similar patterns have announced multi-week long recessions in the past.

Bitcoins GTI Global Strength Indicator. Source: Bloomberg

According to McGlone, recent market growth took place due to long-term price compression and low volatility, thereby "releasing" the price from the cage. McGlone said he expects a similar downturn to follow recent growth:

"Now it is a matter of expensive and I suspect that when you have such a huge bubble, you always have an overhang of people who have to sell."

The article also quotes David Tawil, president of ProChain Capital, crypto hedge fund, who is said to expect the market to continue its downward trend. Although he admits that "it is nice to see a positive move as opposed to a negative move," he notes that it is not reassuring:

"Certainly, an investor would much rather see a gradual rise with constant floors in terms of downward determination, as opposed to a very, very fast approach. It could easily be easy, go easy."

McGlone & # 39; s and Tawil & # 39; s analysis seem to contrast with those of Fundstrat Global Advisors, co-founder Thomas Lee. As Cointelegraph reported yesterday, Lee is, according to Lee, back in a bullish trend. Lee pointed out that BTC has now broken the 200-day moving average.

Moreover, trade and author Peter Brandt apparently disagreed with McGlone tweeted on April 5 he would not be surprised if Bitcoin entered a new parabolic phase.

Earlier this week, the leading US market for derivatives CME Group pointed out that the Bitcoin futures reported a record trading volume on April 4.

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Don Bradman

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