• According to Mike McGlone from Bloomberg, Bitcoin is facing a potential drop to $10,000.
• McGlone sees the possibility of a major BTC downturn that would impact the overall stock market.
• Some analysts are concerned about the $90,000 support which might crack soon pushing the price of BTC down to the $50,000 level.

Mike McGlone is a spectator of Bitcoin (BTC) market fluctuations. He has undergone the psychological roller coaster of trusting the hike to be infinite and, on the other hand, watching it all coming down when the giant pile collapses. At the moment he is looking at bitcoin and expresses his displeasure for the risk involved.

He has a vivid memory of 2018. The cryptocurrency Bitcoin was at a price of $10,000, and people were very optimistic about it and were talking loudly. In that year, he predicted it would “drop a zero” which was very close to the reality.

The depression in price finally halted at a figure of $3,000 which not only he but also a lot of others experienced the feeling of suffering. Now, however, McGlone is again saying the same thing and predicting the same future for BTC with the same amount of $10,000- or perhaps even more so lower.

He refers to it as “classic peak bull market stuff,” the same that characterized the close of 1999. The avidity overtaking the sanity. The graphs going up while the ground underneath is being pulled out. He says it is all very much alike.

How Bitcoin Could Shake the Stock Market

McGlone sees Bitcoin as not alone in falling; the stock market plunging into deeper water is carried along.

The VIX, known as the fear gauge of Wall Street, is telling a tranquil story. The 200-day moving average of the VIX is nearly 19.5. In the meantime, the 120-day realized volatility of the S&P 500 is at 10% which is equal to half of the VIX and also the lowest recorded since 2017. Such tranquillity never persists. It is the uncomfortable silence before the storm breaks.

Bitcoin’s drop, according to him, will be the pebble which disrupts the calm of the pond. The ups and downs of the market will again hit the old averages at around 16%, or perhaps even more. Those investors who got used to the silence will only then realize how quickly the market can move again with the return of fear.

Also Read: BlackRock’s Bitcoin ETF Hit by Record $523M Outflow Amid Market Decline

Bitcoin’s Breaking Point

Bitcoin’s current position is around $90,000 to $100,000. While this is a show of strength for some, for McGlone it’s like a tree branch slowly bending before it gives way. In his view, the critical support is at $90,000. Thereafter, the price of BTC could fall down to $50,000 if that level is broken.

He is indicating the 200-day moving average, which is currently turning over. MicroStrategy’s chart is indicating the same thing. The strength is diminishing. The sellers are there, ready to take over. Prices will rise, possibly even a short run up to $100,000, but he thinks that the tide has turned already.

When the tide has turned sooner or later even a giant will lose his footing. McGlone’s caution is straightforward and cutting, indicating that BTC might go through the most difficult trial of all times. The ascent was lengthy. The descent, if it happens, will be even longer to bear.

Also Read: Strategy Built To Survive 90% Bitcoin Drawdown: Saylor