Bitcoin’s drop below $85,000 raises the risk of a correction to $50,000 especially if macro conditions keep boosting global demand for gold.
Bitcoin (BTC) price has rebounded by 14.60% after plunging below $75,000 for the first time in five months in April. However, its failure to break above the $85,000 resistance level decisively has sparked concerns that the ongoing recovery may trap bulls.
Bitcoin could continue to underperform as Donald Trump’s intensifying global trade war drives investors toward safer assets like gold, according to Bloomberg’s Senior Commodity Strategist Mike McGlone.
McGlone argues that risk assets are showing signs of reverting to long-term means, mainly their 200-week moving averages that have historically served as critical floor during major price corrections.
