Bitcoin Bears and Bulls, Who Will Win This Year?

Bitcoin (BTC) is expected to see further declines due to recessionary pressure, said Mike McGlone, senior macro strategist at Bloomberg Intelligence.

In the most recent edition of Crypto Outlook, McGlone argues that the worst may be yet to come for Bitcoin, and he predicts a liquidity crunch in the second half of 2023 as a result of the recession in the United States.

Although the market's recent recovery offers some hope, McGlone remains skeptical of the continuation of this strength. He predicts a continued downward trend in the market as a whole.

“The temporary rise of the Nasdaq 100 Stock Index may not have a long-term impact on all assets. From the 100-week MA, there is a downward trend for stock indices and Bitcoin," said McGlone.

The question arises whether the worst is truly behind us or whether we should just follow the prevailing trend, especially given the recent price recovery.

“It is important to understand the lesson of the reversed and downward liquidity pump. Looking at the future of Federal funds futures in one year (FF13), a cut in stocks may be needed to get interest rates to come down,” he said.

Previously he had warned about the possibility of Bitcoin dropping to US $ 7,000. At the time, McGlone argued that the impending recession in the United States would likely exert downward pressure on risk assets, including BTC.

According to him, the peak of the Bitcoin price will be US$ 30,000 in 2023, compared to the 100-week MA of around US$ 33,000,

"A recession in the United States, which has not happened yet is likely to put pressure on risk assets," said McGlone.

Meanwhile, an analyst known as Rager said that the bearish market ended in early January.

“This gave way to a significant uptrend. It has been proven since January that extraordinary profits have reached 100 to 200 percent or more on various crypto assets," he explained.

Not All Analysts Have a Bearish View

Rager also notes that this resurgence has attracted the attention of both seasoned traders and newcomers looking to capitalize on the potential of the market.

In the chart he shared, he marked from December 2021 to December 2022 as a bearish year.

This analyst also believes that since January 2023, a true bull market has started and this decline is just a kind of correction to go higher.