Bloomberg’s McGlone Warns Bitcoin & Dogecoin Might Be Headed for Major Price Crash

Mike McGlone, Bloomberg Intelligence's Senior Commodity Strategist, has observed a concerning similarity in the price movements of Bitcoin (relative to gold) and Dogecoin. Both assets have followed remarkably similar trajectories.

This isn't merely a visual coincidence; McGlone interprets it as a potential indicator of a bearish market trend.

Divergent Assets, Convergent Patterns

Bitcoin, often considered "digital gold," and Dogecoin, initially conceived as a joke, appear vastly different. Yet, McGlone's analysis reveals striking parallels in their performance over the past year.

Both experienced sharp rises in late 2023, peaking early in 2024. Subsequently, both assets have declined and fluctuated, exhibiting synchronized patterns.

Currently, both the Bitcoin-to-gold ratio and Dogecoin's price are resting on a long-term upward trendline, offering a degree of support.

However, McGlone anticipates this support will be short-lived. He believes this isn't the beginning of a bull market, but rather a temporary bounce within a larger bear market.

Recessionary Fears Fueling the Decline

McGlone's bearish outlook is largely driven by concerns about the U.S. stock market. While a recession was widely predicted for 2023, it failed to materialize. McGlone argues this merely delayed, rather than prevented, the inevitable economic downturn.

He anticipates a future recession will significantly impact risk assets like Bitcoin and Dogecoin, leading to sharp price drops.

In essence, McGlone cautions against interpreting the recent price bounce as bullish. He suggests it's a temporary reprieve before further price declines.

Dogecoin and Bitcoin Price Update

Dogecoin experienced a nearly 10% increase in the past 24 hours, trading around $0.1827. It's aiming for $0.1885, but must first overcome resistance at $0.186. The 4-hour Relative Strength Index (RSI) exceeding 83 suggests Dogecoin is currently overbought, hinting at a potential short-term correction.

Bitcoin also demonstrated strength, surpassing $94,000 with a near 6% increase in the last 24 hours.