Recession Ahead? Bitcoin and Dogecoin Rally Could Be a Trap, Warns Bloomberg’s McGlone

Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, has spotted something unusual on the charts and it’s raising eyebrows. At first glance, it might seem like a coincidence. But when Bitcoin’s performance against gold starts to mirror Dogecoin’s price action almost exactly, it’s worth digging deeper.

McGlone believes the pattern could be pointing to something more serious: a potential warning sign for where the crypto market is headed next.

Two Different Assets, One Similar Pattern

Bitcoin and Dogecoin don’t seem to have much in common. Bitcoin is often seen as “digital gold,” while Dogecoin started as a meme. But McGlone’s analysis shows that their price action over the past year has been remarkably alike.

Both cryptocurrencies surged at the end of 2023 and hit local highs in early 2024. Since then, both have declined and moved sideways in similar patterns.

Sitting on Support—But for How Long?

Right now, Bitcoin’s ratio to gold and Dogecoin’s price are both sitting on long-term upward trendlines. These trendlines are acting like safety nets—key support levels that have held up so far.

But McGlone warns they may not hold much longer. He doesn’t see the current bounce as the start of a new bull market. Instead, he sees it as a pause or a temporary rebound within a longer-term bearish trend.

Recession Risk Could Hit Crypto Hard

McGlone’s main concern isn’t just the charts. It’s the broader economy – especially the U.S. stock market.

Many expected a recession in 2023, but it never arrived. McGlone believes that delay doesn’t mean it won’t happen. In his view, the recession is still coming – and when it does, high-risk assets like Bitcoin and Dogecoin could take a serious hit.

In short, the current rally might not be the start of something bigger. It could be the calm before the next drop.

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Dogecoin Price Update

Dogecoin is making moves of its own. The meme coin has jumped nearly 10% in the past 24 hours and is now trading around $0.1827.

It’s aiming for the $0.1885 level, but first it needs to break above the $0.186 resistance. That level could decide whether this rally continues or stalls.

Still, there are signs of caution. The 4-hour Relative Strength Index (RSI) has risen above 83, placing Dogecoin in an “overbought” zone. That usually signals a possible short-term correction.

Bitcoin Price Update

Bitcoin is also showing strength. It has broken above the $94,000 mark, gaining nearly 6% over the last 24 hours.

McGlone’s analysis casts doubt on how long this momentum will last. We can only wait and see. The market may look strong on the surface, but under the hood, the signals are getting harder to ignore.

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