- The cryptocurrency market is experiencing slight fluctuations over the weekend. Despite maintaining above the critical $60,000 mark, the leading crypto Bitcoin is struggling to make further progress.
- Bloomberg Intelligence strategist Mike McGlone highlighted an interesting trend that could have significant implications for the crypto market, particularly the relationship between Bitcoin, gold, and the S&P 500.
- Popular analyst Michael Van De Poppe expects a plunge if the critical level cannot be maintained.
Bitcoin is currently trading at a critical price level, with implications for the broader crypto market. If it fails to maintain above $60,000, a significant drop could be on the horizon.
Bitcoin Currently Trading at Critical Price Level
In a recent analysis, McGlone highlighted the decline in the Bitcoin/gold parity, which has broader implications for the S&P 500 and risk assets. The analysis also covered the Bitcoin rally following the SEC’s approval of spot Bitcoin ETFs. According to McGlone, the US ETF launches in January increased entries, strengthening Bitcoin’s leading indicator status. However, Bitcoin failed to reach all-time highs against gold and the S&P 500, thus failing to surpass its peaks set in 2021.
Entries into Bitcoin ETFs Slow Down
Meanwhile, entries into Bitcoin ETFs have relatively slowed down. Considering this, the hangover could have implications for risk assets, including cryptocurrencies. McGlone points out that Bitcoin rose against gold when the S&P 500 e-mini future last rose above its 50-week moving average in November, but now the BTC/gold parity has fallen. Contrary to the performance of the S&P 500, the decline in the Bitcoin/gold parity could have broad implications for risk assets, potentially signaling a reversal.
BTC Price Movement: If It Breaks 60k, It Crashes!
The crypto market is facing selling pressure. As a result, BTC has fallen by 3.86% over the last seven days to $61,079. According to analyst Michael Van De Poppe, Bitcoin is currently trading at a very critical level. Therefore, if it cannot hold at $60,000, it will likely lead to a drop to $55,000 or $52,000. However, the analyst predicts that the rising trend will continue after this.
Conclusion
Bitcoin is currently at a crucial price level, and its failure to maintain above $60,000 could lead to a significant drop. However, the long-term outlook remains positive, with analysts predicting a continuation of the upward trend following a potential short-term drop. As always, investors should exercise caution and conduct thorough research before making investment decisions.
