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Bitcoin's Historical Patterns of Boom and Bust and the Risk of Reversion: Bloomberg Strategist

Bitcoin's historical patterns of boom and bust are closely tied to liquidity, according to Mike McGlone, a senior commodity strategist at Bloomberg. McGlone warns that Bitcoin's current price level of around $27,000 may be at risk of reversion, considering that it was only $7,000 at the end of 2019 before the massive liquidity pump in 2020.

He also notes that slumping copper and cryptocurrencies, including Bitcoin, are paying heed to the warning, which contrasts notably with the resilient stock market.

Meanwhile, crypto analyst Michael Van de Poppe suggests that Bitcoin's recent price action could technically be complete for BTC, with the ABC pattern potentially signaling consolidation and potential for upside.

Bitcoin Bitcoin $62,101.29
-1.49%
Bitcoin
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    Heatwave

    The Bitcoin block reward is forecast to halve on April 20th. This is seen as a bullish catalyst for crypto markets. I agree that it will pump prices in the medium term; however, the price action directly before and after could be negative. The narrative of the halving being positive for crypto prices is well entrenched. When most market participants agree on a certain outcome, the opposite usually occurs. That is why I believe Bitcoin and crypto prices in general will slump around the halving.
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