Bitcoin Breakdown Incoming? Bloomberg Analyst Predicts Downtrend Ahead

Veteran Bloomberg Intelligence strategist Mike McGlone has reiterated his bearish stance on Bitcoin, adding Dogecoin (DOGE) to the list of assets showing signs of weakness.

He believes that while both cryptocurrencies are currently holding their trendline supports, these levels are unlikely to hold much longer, and a deeper correction may be imminent.

In his recent market analysis, McGlone presented a comparative chart highlighting the synchronized movement between Dogecoin and what he referred to as the “Bitcoin/gold cross”—a custom Bloomberg metric likely designed to track the correlation between Bitcoin and gold.

According to McGlone, the mirrored chart patterns between these two assets could be a warning sign of broader market vulnerability. He noted that the current price action is more indicative of a bear market bounce—a short-term recovery before another drop—than the beginning of a sustained bull market.

Bitcoin’s Correlation With Stock Market Grows

McGlone’s cautious outlook is rooted in his belief that Bitcoin remains strongly correlated with traditional financial markets, particularly major indices like the S&P 500, Nasdaq, and Dow Jones. With these markets showing signs of recessionary pressure, he warned that Bitcoin could soon follow in their downward trajectory.

He emphasized that while the current technical support levels are still intact, macroeconomic challenges—such as weakening equities and tightening financial conditions—suggest that Bitcoin and other cryptocurrencies may soon break down.

McGlone described the current rally as temporary and maintained that a significant price correction remains more likely than a full recovery in the near term.