26.01.2023 04:24 PM
Mike McGlone saw the emerging bullish trend.

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On the 4-hour TF, it is evident that bitcoin is confidently moving to the level of $24,350. Remember that the expansion started with the release of the US inflation report a few weeks ago. And there was just one report; since then, the cost has risen by $7,000 alone. Although we think it could help the cryptocurrency market, it is incorrect to attribute a 50% increase in bitcoin from its annual lows to a single report on inflation.

As we've previously stated in other articles, dealers and miners hurried to sell bitcoin before its price might increase. And the "experts" are shouting from the rooftops about the start of a new "bullish" trend. Everything complies with the requirements. This time, one of the best-known analysts in the world, Bloomberg expert Mike McGlone, declared the start of an upward trend. He claimed that the technical landscape right now is strikingly comparable to the one from four years ago. In 2019, the Fed started to loosen monetary policy at that point, but overall, McGlone thinks the situation is pretty similar now. Despite the similarity of the images, Mr. McGlone contradicts himself. Initially lower than the present level, which hasn't even reached its high yet, the Fed did decrease rates in 2019. The majority of hazardous assets exhibited growth when monetary pressure decreased. The US stock market included. Now, however, things are exactly the reverse because interest rates are rising, they won't start to fall until after the end of this year, and the US stock market is still "at the bottom."

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At the same time, we should honor McGlone for pointing out that a new decline in the NASDAQ indices might result in a new collapse of bitcoin. The Fed, which keeps raising rates, is to blame for everything, said the Bloomberg expert. Given that Mr. McGlone does not appear to be particularly bothered by the issues caused by rising inflation, it is reasonable to believe that he is a "bitcoin" investor. If this is the case, then its "bullish" predictions are cheap because cryptocurrency speculators continue to sing about the impending rise of bitcoin everywhere. Since no one believes in the predictions of "$250,000 in six months," the language has barely changed. Therefore, cautious predictions like "30–40,000 USD in 2023" are now in vogue.

The "bitcoin" quotes on the 4-hour time frame have surpassed the $18,500 mark, allowing the first cryptocurrency's rise to continue with the target of $24,350. From our perspective, a rebound from the level of $24,350 will serve as a signal to close any long positions and begin new short positions with targets of $18,500 and $17,582. The fundamental backdrop should ideally gradually improve as Bitcoin enters a new "bullish" trend, allowing the cryptocurrency to continue rising.

Paolo Greco,
Analytical expert of InstaForex
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