Bitcoin (BTC) could face further downward pressure as interest rates rise globally, according to Bloomberg Intelligence senior commodity strategist Mike McGlone. In his statement on Tuesday, McGlone evaluated Bitcoin’s performance in the third quarter of 2023 and its future outlook. He noted that some persistent Bitcoin momentum indicators have reversed, which may require the crypto to prove its strength. He also pointed out that Bitcoin reached the steepest decline compared to its 100-week moving average since it could be calculated and approached this level in July.
McGlone added that staying just above $30,000 above the 100-week average would show recovery strength. Otherwise, it seems more likely that Bitcoin will continue its retracement towards $10,000, which acted as the primary focus between 2017-20 until the largest liquidity pump in history. The analyst assessed that it is natural for BTC, which emerged during an unprecedented period of zero and negative interest rates, to rebound slightly when rates rise:
Bitcoin, which fell nearly 15% in the third quarter through Sept. 6 despite U.S. spot ETFs nearing approval and a buoyant stock market, may be telling us something.