08.08.202207:51 Forex Analysis & Reviews: Mike McGlone: Bitcoin is very oversold

On the 4-hour TF, the current picture of bitcoin is also very eloquent and does not raise any questions. There is a clear ascending channel, which has been maintained for several weeks. The cryptocurrency does not even try to leave it and moves strictly inside it. This channel has a rather weak angle of inclination and does not imply a strong growth of the asset at all. If we try to give the clearest possible definition of the direction of this channel, we will probably have to use the word "lateral" rather than "ascending." However, this channel performs two important functions at once. First, it signals that the correction has not yet been completed. The second is that fixing below will likely signal a new round of the "bearish" trend in bitcoin. In the meantime, since this consolidation has not happened, traders must decide whether they want to trade bitcoin inside an actual side channel.

In principle, the entire cryptocurrency market is now waiting for an outcome. Everyone understands perfectly well that if this "bearish" trend was completed, then "digital gold" would already be flying up. We are still seeing another sluggish attempt to correct it, but most experts say that the decline of the "bitcoin" will resume. Few people are waiting for it below $ 14,000, but recall that in 2021 almost everyone was waiting for it around $ 100,000. The cryptocurrency market does not consider the forecasts of experts and pseudo-experts. For example, one of the famous people in the world of cryptocurrencies, Mike McGlone, senior commodity strategist at Bloomberg, believes that bitcoin and ether are now trading too low and very much oversold. In other words, these coins are sold much lower than their real value. Earlier, Anthony Scaramucci, the head of SkyBridge Capital, voiced a similar idea. However, McGlone added that bitcoin would sooner or later become a "global digital asset." Many traders and investors have an excellent opportunity to purchase bitcoin and ether at a discount. For some reason, McGlone did not explain why the two main cryptocurrencies are trading so low now if they are in the future.

In general, the situation in the cryptocurrency market remains quite complicated. There are neither technical nor fundamental reasons to expect any serious growth in "bitcoin." We believe the fall will resume sooner or later, and BTC will test the $10,000 level this year.

In the 4-hour timeframe, the quotes of "bitcoin" continue a weak upward correction. We believe that the fall will resume, but now we need to wait for the consolidation below the ascending channel. The first target for sales, in this case, will be the level of $ 17,582, which is the last local minimum. Next, the overall goal for the two timeframes is $12,426.