Bitcoin ‘could easily see $30K’ with stocks due to 30% drawdown in 2022 — Analyst

Bitcoin (BTC), which opened Wall Street trading, saw a jump to $41,500 on March 21, as last week’s late gains continued.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

McGlone: Fed says “Don’t Buy the Dip”

TradingView and Cointelegraph Markets Pro data showed that BTC/USD advanced $500 to the Wall Street open. This was a strong start, however, it was only temporary.

The largest cryptocurrency was mixed in the midst of a buoyant stock exchange. Traders waited to see if the current trajectory would last.

Crypto Ed, a popular trader, identified the $41,500 area as a pivot point. A bounce and continuation could occur, which would provide an opportunity for longs. However, a rout would indicate a trip below $40,000 support.

He identified $37,000 as a possible bearish target in his most recent YouTube update.

Pierre, a trader, called the $40,800-$41,000.200 zone a “must-hold” after analyzing the four-hour chart.

“LTF pivot today Imo (break it and teleport to 42.0-42.5k),” concluded he in his latest entry in a Twitter thread dedicated to spot price action.

For those who hoped that the stock market recovery would last longer, Mike McGlone, senior commodities strategist at Bloomberg Intelligence, has some worrying news.

He said that the stock market was the longest in 20 years, the most expensive in terms of GDP, and most expensive stock markets compared to real estate and global equities. “The Fed must stop the inflation.” he explained Monday to the Wolf of All Streets podcast.

“So, for me, that’s what’s the key puzzle piece this year. If it doesn’t get solved — i.e. the stock market falling about one-third — then that’s going be an issue.”

Thus, bets were already in place for a significant correction in equities, with Bitcoin’s positive correlation making losses for hodlers a major liability.

McGlone continued by pointing to the indications made by Jerome Powell, Chair of the United States Federal Reserve, that aggressive interest rate increases to control inflation could be possible at future meetings of Federal Open Market Committee.

He said, “That was my warning — people who don’t understand it yet — ‘Don’t buy the dip’ — this is for people who haven’t learned their lessons.”

He stated that Bitcoin could reach $100,000 in the future, but that it “might easily reach $30,000” first.

Germany exposes inflation risks

Before the Wall Street opening bell, more macro news was available from Europe.

Related: “No more 4-year cycles” — 5 things you should know about Bitcoin this week

Inflation figures revealed the severity of the problem facing policymakers, despite a rebound in European equities relative to the month of war between Russia & Ukraine.

Holger Zschaepitz, market commentator, noticed Monday’s German producer price index (PPI).

“German PPI rises 25% YoY in February” This was the largest increase since 1949, when the stats were first published. He warned that the PPI ex-energy increased 12.4% YoY.”

German PPI chart. Source: Holger Zschaepitz/Twitter

Classic safe-haven metal, like BTC, was also looking for direction. It made up the ground it lost on Friday’s downhill candle and traded at $1,934 as of this writing.

1-day candle chart for XAU/USD Source: TradingView

Altcoins had a flat day with no top 10 cryptocurrencies in terms of market capitalization moving more than 5%.