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


Bitcoin (BTC) opened its trading session on Wall Street by jumping to more than $ 41,500 on March 21 while last week’s late gain lasted.

BTC / USD 1-hour candle chart (Bitstamp). Source: TradingView
McGlone: ​​Fed says “Don’t buy dip”
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD advanced $ 500 at the opening of Wall Street to see a strong start after the best weekly close in four weeks, but progress was short-lived.

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

For popular retailer Crypto Ed, an area of ​​about $ 41,500 was important as a potential focal point – there could be a rebound and a resumption, providing an opportunity for debt, but a downturn would mean a trip below $ 40,000 support.

In his latest update on YouTube, he identified $ 37,000 as a potential target for bears.

Analyzing the four-hour chart, meanwhile, retailer Pierre called the $ 40,800 to $ 41,200 “must hold” zone.

“We have an LTF pivot today (stop it, teleport to 42.0-42.5k),” he concluded in the latest entry in a dedicated Twitter topic on spot prices.

Meanwhile, looking back at the broader macro picture, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, has had some troubling news for those hoping the stock market revival will take much longer.

“So we have the most expanded stock market in 20 years relatively … the most expensive stock market in terms of GDP in human history, the most expensive stock market relative to real estate and versus global stocks ever … and part of whether that triggered inflation and The Fed needs to suppress that inflation, ”Wolf of All Streets told the Podcast on Monday.

“So for me, that’s the key point of the puzzle this year; that if it doesn’t fill up – that is, the stock market falls by a third – then that will be a problem. ”
As such, bets were already in place for a significant stock correction, with the positive correlation of Bitcoin making losses for owners a major obligation.

Continuing, McGlone pointed to hints from U.S. Federal Reserve Chairman Jerome Powell that more aggressive interest rate hikes to curb inflation could come at further meetings of the Federal Open Market Committee.

“It was my warning – people who don’t understand it yet – ‘Don’t buy a dip’ – it’s for people who haven’t learned their lessons,” he said.

Specifically for Bitcoin, he set a target of $ 100,000, but so that the market “could see $ 30,000 first.”

Germany poses naked dangers of inflation
More macro news that was hard to swallow came from Europe before the opening bell of Wall Street.

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

Despite the recovery of European stocks in relation to the month of the war between Russia and Ukraine, data on inflation showed the extent of the headache of policy makers.

The German producer price index (PPI) was on the radar of market commentator Holger Zschaepitz on Monday.

“Germany’s PPI jumped 25.9% year-on-year in February. This was the largest increase since the start of statistics in 1949. The ex-energy PPI rose 12.4% year-on-year, ”he warned.

German PPI chart. Source: Holger Zschaepitz / Twitter
Like BTC, the classic gold haven, meanwhile, was waiting its turn in search of direction, making up for lost in its candlelight on Friday and trading at around $ 1,934 at the time of writing.

XAU / USD 1-day candle chart. Source: TradingView
On altcoins, flat performance dictated the mood, with none of the top 10 cryptocurrencies by market capitalization advancing by more than 5% that day.



Please enter your comment!
Please enter your name here