Bloomberg Intelligence analyst Mike McGlone shared a new comment on the cryptocurrency market. McGlone stated that the correlation between Bitcoin (BTC) and stock markets has peaked in recent days. However, according to the famous analyst, Bitcoin and altcoin units are still far from being a mainstream investment tool.
Bloomberg analyst drew attention to the downside risks of the market in his post on account X this morning. McGlone stated that the probability of a decline is greater in investment vehicles that perform well and that attract large audiences.
'It Went Up, So Will Keep Going Up' Risks in Bitcoin –
The lessons of high-performing, widely hyped assets show price reversion may be the greater risk once the masses jump on board. #Bitcoin at about $26,000 on Aug. 28 is slightly below the end of 2020, similar to… pic.twitter.com/3UdAbpLNLe— Mike McGlone (@mikemcglone11) August 28, 2023
Emphasizing that Bitcoin has gained 26 thousand percent in 12 years, McGlone thinks that it will not be a surprising development for the leading crypto currency to fall to the level of 10 thousand dollars.
Comparing BTC performance with the stock of the giant e-commerce platform Amazon, Bloomberg Intelligence analyst pointed out that the two investment vehicles are in similar situations.
“Bitcoin is currently hovering slightly below its end-2020 price. Amazon stock price is in a similar situation.”
Bitcoin (BTC) Price
The largest cryptocurrency by market cap anchored at $26,000, ignoring last Wednesday and Thursday.
Investors are watching which way BTC price will break the $26,780-25,200 channel in the short term. If the channel is broken to the downside, the 24,000 level appears as possible support. However, if the market moves up, the next resistance is found at $27,450.
