Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, has spotted something interesting and possibly worrying. He compared the movement of Bitcoin (vs. gold) with Dogecoin and found that both are following nearly the same path.
But this isn’t just about matching charts. It could be a sign of a Bearish Run.
Two Different Assets, One Similar Pattern
At first glance, Bitcoin and Dogecoin seem worlds apart. One is seen as “digital gold,” while the other started as a joke. But McGlone’s chart shows something surprising, their movements have been very similar for the past year.
Both rose sharply at the end of 2023 and reached their peaks early in 2024. Since then, both have dropped and bounced around, following the same rhythm.
Right now, both the Bitcoin-to-gold ratio and Dogecoin’s price are resting on a long-term upward trendline. This support level is like a safety net.
But McGlone doesn’t think it will last much longer. He believes this isn’t a sign of a new bull market, just a bounce in a longer-term bear market.
Recession Fears A Drop
McGlone thinks things could turn worse soon, as his main reason is the U.S. stock market. Many people thought a recession would happen in 2023, but it didn’t. Now, McGlone believes the recession was only delayed, not avoided.
He thinks it will still come, and when it does, risky assets like Bitcoin and Dogecoin could drop sharply.
His message is clear. The recent crypto price bounce might not mean a bullish rally. It could just be a short break before prices fall again.
Dogecoin – Bitcoin Price Update
Dogecoin has jumped nearly 10% in the past 24 hours and is now trading around $0.1827. The popular meme coin is now aiming for the $0.1885 level, but first, it needs to break above the $0.186 resistance.
Looking at the charts, the 4-hour Relative Strength Index (RSI) has climbed above 83, which suggests that Dogecoin is currently in an “overbought” zone. This usually means a short-term price correction could be on the way.
Meanwhile, Bitcoin is also showing strength. It has broken past the $94,000 mark and is up nearly 6% in the last 24 hours.
