Bloomberg Expert Sounds the Alarm: Bitcoin at Risk of Major Collapse – Here's Why

cryptonews.com:

As Bitcoin (BTC) bulls fight hard to keep the New Year's rally rolling, one expert is sounding the alarms.

So far 2023 has seen the onset of a sensational recovery from the depths of December.

BTC has gained +31% YTD in price action that has reinvigorated markets. Many influencers on crypto twitter have been quick to label it the end of crypto winter.

The warning bells come from none other than Mike McGlone - the 'man behind the dashboard'. A pundit known in recent years for mainstreaming Bitcoin in financial media.

McGlone is a former Head of Research and Strategy at ETF Securities turned Bloomberg' Senior Macro Strategist.

Taking his thesis to twitter. The top analyst presented his case that risk-assets aren't out of the woods just yet.

Concerns surrounding the macro sentiment for risky assets such as crypto is at the heart of McGlone's concerns as he explained.

"The primary 1Q risk-asset options appear to be either bear-market bounce or bottoming," said McGlone.

"Bitcoin may be rolling over - the benchmark crypto is backing away from resistance as the top headwinds remain".

Indeed, February's Bitcoin price action has been challenging. A retracement from stiff resistance at $24,000 saw price tumble down to local support at $21,750.

However, while bulls attempt to consolidate gains here - things aren't looking good. The chart structure is entering a dreaded head-and-shoulder pattern.

McGlone's analysis suggests this is because of the ongoing pressure of headwinds from the US Federal reserve.

"Rising rate expectations as indicated by the Federal Futures Funds [in Q1] ... but the main difference: markets are lower than last year."

"Don't fight the Fed," he added.

Indeed, fears of rates hikes have engulfed the market since the end of