Bitcoin [BTC] is at its most expensive level since its record highs in December 2017, Bloomberg Intelligence analyst Mike McGlone explains in an article published on April 5.
This week, the bitcoin’s price hiked above $5,000 for the first time since November. A technical analysis tool, GTI Global Strength Indicator, a technical analysis tool showed it is the most expensive since December 2017 when bitcoin price nearly reached $20,000. Earlier also in the past the market witnessed multi-week downturns. According to CoinMarketFeed stats the bitcoin price climbed another 3 percent on last Friday.
Report suggests that Bitcoin’s GTI Global Strength Indicator shows that the coin has not been this expensive since its price broke its record value of $20,000. According to the reports from Bloomberg, similar patterns of multi-week downturns have been observed in the past as well.
According to McGlone, the recent growth in the crypto market was triggered because of long-term price compression and low volatility that caused the price to be “released from the cage.” McGlone expressed that he believes a similar downturn period will follow after the recent growth.
“Now it’s a question of duration and I suspect when you have such a massive bubble, you’ll always have an overhang of people who need to sell, “he further added.
The president of crypto hedge fund ProChain Capital, David Tawil expects that the cryptocurrency market will continue its downward trend. He also shares that “it’s nice to see a positive move as opposed to a negative move.”
“Certainly, an investor would much rather see a gradual rise with constant floors in terms of downside being established, as opposed to a very, very quick run-up. It could easily be easy come, easy go,” he further added.
Trader and author Peter Brandt seems to disagree with McGlone He tweeted on his official Twitter handle recently, he opinionated that the dominant cryptocurrency would soon enter another parabolic phase.
McGlone’s and Tawil’s opinion contradicts with Thomas Lee, co-founder and Global advisor of Fundstrat predictions. As CoinMark reported, according to Lee, Bitcoin is back in a bullish trend. Lee highlighted that cryptocurrency has currently crossed over its 200-day-moving-average.
Recently the prominent U.S. derivative market CME Group revealed that its Bitcoin futures reported highest trading volumes on April 4.