Mike McGlone: ​​Bitcoin and Ether are oversold

Article Reading Time:
1 min.

A senior commodity strategist at Bloomberg Intelligence believes that leading cryptocurrencies are trading below their true value, according to technical market analysis.

Mike McGlone drew on a number of observations, but focused most of his attention on a specific indicator.

“The benchmark cryptocurrency has reached its mostlow compared to the 100-week moving average in July. This situation represents an extreme discount to the market's sustained bullish trend."

The analyst emphasized the importance of stocks thathave repeatedly demonstrated a significant correlation with Bitcoin. The Bloomberg expert notes that the role of the Federal Reserve System (FRS) should not be underestimated.

“Don't fight the Fed has been my mantra for risk assets since late last year,” McGlone said.

According to him, Bitcoin and cryptocurrencies were a key part of the hype of 2021 and Bitcoin and Ethereum will still come out ahead in 2022:

“Bitcoin is on track toto become a global digital collateral, and Ethereum has become a major driver of the digital revolution, as evidenced by the ability of the most widely traded cryptocurrencies, dollar tokens.”

Founder of the crypto fund SkyBridge CapitalAnthony Scaramucci, based on his experience investing in cryptocurrencies, believes that BTC and ETH are fundamentally undervalued and technically oversold.