Bitcoin ‘could easily see $30K’ with stocks due 30% drawdown in 2022 — analyst


Bitcoin (BTC) the Wall Street trading session with a spike over $ 41,500 on March 21 while last week’s late gains held up.

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BTC / USD 1-hour candlestick chart (Bitstamp). Source: TradingView

McGlone: ​​Fed Says “Don’t Buy the Dip”

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD is advancing $ 500 on the Wall Street open to see a strong start after its best weekly close in four weeks, but progress has been short-lived.

Amid a buoyant stock market, the largest cryptocurrency showed mixed signs on the lowest time frames as traders waited to see how long the current trajectory could last.

For popular retailer Crypto Ed, the area around $ 41,500 was essential as a possible pivot point – a rebound and continuation could occur, providing an opportunity for long, but failure would mean a trip below $ 40,000 support.

In his last YouTube updatehe identified $ 37,000 as a possible bearish target.

Analyzing the 4-hour chart, meanwhile, trader Pierre called the $ 40,800- $ 41,200 zone a “must hold”.

“LTF pivot today imo (break it, teleport to 42.0-42.5k),” he concluded in the last entry in a dedicated Twitter thread about spot price action.

In dealing with the broader macro image, meanwhile, Mike McGlone, a senior merchandising strategist at Bloomberg Intelligence, had some relevant news for those who hope the stock market revival will last much longer.

“So we have the largest stock market in 20 years relatively … the most expensive stock market in terms of GDP in human history, the most expensive stock market for real estate and global stocks ever … and part of that is inflation and the Fed has to push back that inflation, “he said told the Wolf of All Streets Podcast.

“So to me, that’s the key point of the puzzle this year – that if it doesn’t fill up, that is, the stock market will fall by about a third, then that’s going to be a problem.”

As such, bets have already been in place for a significant stock correction, with the positive correlation of Bitcoin making losses for hodlers a major responsibility.

Continuing, McGlone pointed to hints from Fed Chairman Jerome Powell that more aggressive interest rates to tame inflation could come at further meetings of the Federal Open Market Committee (FOMC).

“That was my warning – people who don’t get it yet -‘ Don’t buy the dip ’- that’s for people who haven’t learned their lessons,” he said.

About Bitcoin specifically, he gave a $ 100,000 target out there, but that the market “might easily see $ 30,000 first.”

Germany exposes inflationary dangers

More hard-to-swallow macro news came from Europe in front of the open Wall Street bell.

Related: ‘No more 4-year cycles’ – 5 things to know in Bitcoin this week

Despite a recovery in European equities against the month of war between Russia and Ukraine, inflation figures have shown the extent of the headache developing for policymakers.

On the radar of market commentator Holger Zschaepitz on Monday was Germany’s producer price index (PPI).

“German PPI jumped 25.9% YoY in February. This was the highest increase ever since the start of the statistics in 1949. PPI ex-energy rose 12.4% YoY,” he said. warned.

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German PPI chart. Source: Holger Zschaepitz / Twitter

Like BTC, classic safe haven gold meanwhile also claimed its time looking for a direction, making up for lost ground in its falling candle on Friday and trading around $ 1,934 at the time of writing.

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XAU / USD 1-day candle chart. Source: TradingView

On high coins, flat performance dictated the mood, with none of the top ten cryptocurrencies in terms of market share advancing by more than 5% in the day.