Bloomberg analyst Mike McGlone explained that he believes bitcoin may be on the way to becoming “one of the biggest bull markets in history“, due to a number of factors, or that crypto could be a “failed experiment on the way to being rendered superfluous“.
According to a series of tweets that McGlone shared with his followers, bitcoin is approaching a “momentum similar to 2018 low“, which was the end of a year-long bear market that saw the price of the flagship cryptocurrency plunge from around $19,000 to $3,200. Mike McGlone relied on data from the Bloomberg Galaxy Crypto Index and BTC’s 50 and 100 week moving averages.
The Bloomberg Galaxy Crypto Index, it should be noted, is designed to measure the performance of the largest cryptocurrencies to gauge overall market performance, while moving averages are a technical analysis tool used to identify direction of an asset’s trend and determine its support and resistance levels.
Taking these data into account and considering the risk/reward ratio (risk/reward) of bitcoin for investors in the second half, McGlone suggested that BTC is either on the way to “one of the biggest bull markets in history“, because it starts the second half at a “relatively discounted price“.
#Bitcoin could be one of the greatest bull markets in history at a relatively discounted price to start 2H. Or the crypto may be a failing experiment in the process of being made redundant, like #crudeoil. Our bias is Bitcoin adoption is more likely to continue rising pic.twitter.com/qtLRR6isXF
—Mike McGlone (@mikemcglone11) July 6, 2022
Data from Glassnode showed that BTC exited exchanges at “most aggressive rate in historyas total exchange outflows in June peaked at 151,000 BTC, worth over $3 billion. A drop in supply in the stock markets could drive up the price of the cryptocurrency if demand suddenly increases.
The numbers notably come at a time when the number of active cryptocurrency users at Bank of America has fallen more than 50% from its peak at the peak of the cryptocurrency bull market, as prices cryptocurrencies are falling and bitcoin is posting its worst quarter in over a decade.
In his analysis, McGlone noted that the recent sell-off could see the US Federal Reserve act to prevent the market from continuing to decline and the economy from entering a deep recession, as he expects the recent rise in interest rate of 75 basis points in June could “be the last“if the actions”continue to fall at a similar rate” to that of the first half of the year.
If stocks keep dropping at a similar velocity as in 1H, the June 75 bps hike may be the last. https://t.co/zHtLfuYoZg
—Mike McGlone (@mikemcglone11) July 4, 2022
Notably, a key indicator shared by cryptocurrency analyst Ali Martinez, who has accurately analyzed previous BTC bear market lows over the past two bear cycles, seems to suggest that the cryptocurrency is heavily undervalued. .
In 2015, Bitcoin’s MVRV index, which is calculated by dividing market value by realized value, dropped to -56.85% for “mark the end of the bear market.“In December 2018, after the price of bitcoin plunged from a high near $20,000 to just over $3,000, it fell to -55.62%.
The analyst added that BTC’s MVRV index reached -50.09% this cycle in mid-June and now stands at -48.23%, even with the price of the cryptocurrency below the lows. $20,000.