Bitcoin’s rally, which started late in 2024, has been making headlines across financial landscapes. The leading cryptocurrency’s meteoric rise fueled hopes that it could reach $100,000. However, a renowned financial expert has cautioned that the Bitcoin boom might be losing steam. Let’s delve into the specifics of these predictions and understand potential market scenarios that could affect Bitcoin’s price trajectory.
An Expert’s Take on Bitcoin’s Future
Mike McGlone, a Senior Commodity Strategist at Bloomberg, cautions that Bitcoin might face a significant setback, potentially retracing towards $10,000. His analysis of Bitcoin’s current trajectory closely mirrors previous speculative bubbles, which he disclosed in a March 14 post.
Bitcoin’s price, he forewarned, could be dragged down by several factors, including a rise in gold prices, fluctuations in risk sentiment, and a shift in macroeconomic conditions. He noted an interesting trend – as Bitcoin dropped 15%, gold surged an equivalent percentage in 2025, indicating a shift in demand from risk assets to traditional safe-havens.
The Bitcoin-Gold Dynamic
On March 14, gold surpassed the $3,000 milestone, a first-time occurrence that highlighted investors seeking a safe haven amidst economic uncertainties, particularly those exacerbated by President Trump’s trade tariffs. However, the precious metal eventually pulled back a bit, a phenomenon attributed to profit-taking.
Bitcoin and S&P 500 Correlation
McGlone also highlighted Bitcoin’s historical performance correlation with the S&P 500, especially during economically turbulent periods. He further drew parallels between the current cryptocurrency frenzy and previous bubble bursts, like the dot-com disaster in the early 2000s. McGlone inferred that the astronomical Bitcoin ETF listings and spiraling retail speculation hinted at an over-optimistic market.
Political Influence on Bitcoin
President Trump’s endorsement of cryptocurrencies could trigger greater political scrutiny of digital assets, potentially leading to intensified volatility, according to McGlone. In another post, he reinforced his cautionary stance, predicting a Bitcoin crash and suggesting that it might “lose a zero.” He predicted that investors might flock to gold as risk assets come under pressure, thereby reinstating gold’s status as a safety net.
Bitcoin Price Analysis
As of the last update, Bitcoin was trading at $83,840, recording a 1.3% increase over the last 24 hours despite a 3% weekly drop. Patron, an anonymous analyst, noted on March 14 that Bitcoin had broken out of an ascending triangle, a bullish pattern with a calculated move target of $90,405.
Bitcoin Support and Resistance Levels
Patron’s analysis identified the key support level at $82,000, while resistance could stall upward momentum. Holding above $85,000 would bolster the bullish case, but failure to maintain support might warrant a retest of $80,000.
An Unfolding Falling Wedge Pattern
Another prominent virtual analyst, TradingShot, drew attention to Bitcoin’s falling wedge pattern, a trend that historically precedes significant price rallies. As per his TradingView analysis, Bitcoin is navigating below the 50-day Moving Average (50D MA) but finds solace at the 50-week Moving Average (50W MA), a typical groundwork leading to prominent breakouts.
Over the past two years, Bitcoin’s long-term channel up cycle has registered similar falling wedge patterns on six occasions, each denoting a bottom ahead of a breakout. Thus, as Bitcoin reassesses its long-term channel-up support, similar to previous troughs in September 2024 and September 2023, the likelihood of a robust rebound intensifies.
Are these Bitcoin Price Projections Reliable?
Sophisticated tools and in-depth market analyses, like those provided by Finances Zippy, equip investors with real-time price predictions and expert-driven market trends. However, financial market predictions, including those for Bitcoin, should be interpreted with caution given the inherent volatility and unpredictability of financial markets.
Is Bitcoin a Safe Investment?
Despite its recent rise, Bitcoin’s long-term investment safety remains a topic of debate. The potential for high returns attracts many, but investors should also brace for significant risks. As with any investment, it is advisable to conduct thorough research and consider various market factors before making decisions.
Can Bitcoin Surpass Gold as a Safe Haven?
Bitcoin has often been termed ‘digital gold,’ but whether it can dethrone gold as a safe haven is uncertain. The recent shift of investors from Bitcoin to gold in uncertain economic times suggests that traditional safe-havens still hold sway. However, the growing acceptance of Bitcoin suggests it might compete more closely with gold in the future.
