TL;DR
- Mike McGlone, from Bloomberg Intelligence, warns that the recovery of Bitcoin and Dogecoin could be only temporary, anticipating a possible drop.
- McGlone points out that both Bitcoin and Dogecoin have shown a trend similar to gold in recent months and warns that current support levels might not hold for long.
- The analyst also highlights that a global economic recession could severely affect risk assets such as cryptocurrencies, triggering significant drops.
Mike McGlone, senior strategist at Bloomberg Intelligence, has issued a warning about the future of Bitcoin and Dogecoin, two of the most popular cryptocurrencies. According to his analysis, although both have recovered recently, this situation might be only temporary and could precede a significant drop in the prices of both assets.
McGlone has observed that Bitcoin’s behavior against gold has followed a trend similar to that of Dogecoin in recent months. Both assets reached highs in late 2023 and early 2024, but since then have shown declines and sideways movements, suggesting that the market might be in a correction phase. Currently, both Bitcoin and Dogecoin are at support levels, which could offer them some short-term stability. However, McGlone believes these levels will not hold for long.
Bear market bounce or new bull? My bias is the former. The Bitcoin/gold cross and Dogecoin have same-chart syndrome. Trendline support is holding, but I expect it to eventually be breached as the US stock market drops for the recession that did not come in 2023.
Full report… pic.twitter.com/dnuz4o1Q0q
— Mike McGlone (@mikemcglone11) April 23, 2025
McGlone Believes the Recession Has Yet to Arrive
One of his main concerns is the possible impact of a recession on the global economy, especially on the U.S. stock market. Although many expected a recession in 2023, McGlone maintains that it has yet to arrive. In his view, when it finally happens, risk assets such as cryptocurrencies could fall dramatically. The recession could put even more pressure on the markets, severely damaging the most volatile assets.
As for current prices, Dogecoin rose nearly 10% in the last 24 hours, reaching $0.18. However, its Relative Strength Index (RSI) has hit high levels, suggesting that DOGE could be in overbought territory and vulnerable to a short-term correction. Bitcoin, for its part, rose 6% in the same period, surpassing $94,000. Although both show positive trends, McGlone warns that it is not certain this momentum will last for long.
The next price movements for Bitcoin and Dogecoin could be influenced by the global economic context. With these factors in mind, the analyst suggests that the market rally might be just a pause before a deeper drop
