Comparing Bitcoin's 2015 and 2023 Price Trends
The chart fractal emphasizes the similarities between Bitcoin's current price trends and those recorded after the 2013-2015 bear market. The cryptocurrency's consolidation in both periods is strikingly similar, indicating a possible price increase to $50,000.
Mags Points Out Key Bitcoin Price Breakout
Bitcoin's price broke above the $16,000-$25,000 range in March 2023, leading Mags to note its resemblance to the breakout in October 2015. The analyst suggests that being bearish now is akin to being bearish when Bitcoin's price was $350.
Fed's Interest Rate Hikes Affect Bitcoin Rally
The bullish case for Bitcoin is supported by expectations that the US Federal Reserve will slow its interest rate hikes. Lower rate expectations have led to a decline in the US 10-year Treasury note yield, boosting investor interest in zero-yielding assets like Bitcoin and gold.
Dollar Weakness Increases BTC/USD Prices
Lower yields have also reduced US dollar demand, resulting in a 1.33% loss in 2023 against a basket of top foreign currencies. As Bitcoin's value is largely denominated in dollars, this implies higher prices for BTC/USD.
Bloomberg Analyst Warns of Bitcoin Bull Trap
However, Bloomberg analyst Mike McGlone cautions about a potential bull trap in the Bitcoin market due to a growing liquidity crunch. He believes it may be illogical to expect the stock market, crude oil, copper, and the Bloomberg Galaxy Crypto Index to sustain recent bounces as money supply and commercial bank deposits fall around 2%.
