Bloomberg Strategist Predicts Bitcoin May Revisit $50,000: Here’s Why

Summary: A key strategist from Bloomberg Intelligence foresees a significant potential drop in Bitcoin’s price to around $50,000, even as the cryptocurrency shows signs of recovery in the short term. Analysts are divided on whether Bitcoin can break resistance levels to avoid this downturn.

Key Takeaways:

Bloomberg's Mike McGlone warns Bitcoin could drop 45% to $50,000.
Bitcoin has recently gained 9% but is experiencing a significant decline for November.
Analysts suggest crucial resistance levels to overcome for a full recovery.
A revisit to $50,000 would signify a significant drop from its current price.

Bitcoin at a Crossroads: Potential for a 45% Decline

A notable commodity strategist at Bloomberg Intelligence, Mike McGlone, has indicated that Bitcoin (BTC) faces the risk of a steep 45% decline, potentially bringing it back down to its yearly pivot of approximately $50,000.

Despite a 9% increase in the last week, pushing Bitcoin to around $92,400, the market is still reflecting signs of stress over a longer timeframe, especially after showing a decline of about 15% for November so far. If buyers do not regain control soon, this could lead to Bitcoin's most significant monthly loss since February 2025.

Is Bitcoin Heading Towards $50,000?

In a recent post on X, McGlone highlighted data that tracks Bitcoin's yearly performance from 2014 to 2025, comparing it with the S&P 500 index and its 120-day volatility. The analysis shows that Bitcoin has a tendency to gravitate towards the $50,000 level, which has been a significant pivot since 2021.

Bitcoin Yearly Pivot Since 2021 | Bloomberg Intelligence

Bitcoin first reached this $50,000 milestone in March 2021 and has oscillated around it since then. Even with BTC trading roughly 84% higher than $50,000, historical trends indicate that Bitcoin frequently returns to this critical point during times of market tightening.

The chart McGlone provided also reveals a close correlation between Bitcoin and the S&P 500. Currently, the volatility is recorded at about 11%, marking one of the lowest end-of-year volatility rates since 2017. McGlone points out that such low volatility usually signals increasing market pressure. When equity volatility hits these levels, significant price movements can follow, leading him to believe that Bitcoin might revert to the $50,000 mark—a price last seen in August 2024.

In this context, a drop to $50,000 would imply a decline of around 45.8% from the present price levels. The last episode of such a substantial downturn happened between April and June 2022, when Bitcoin fell over 70% during the fallout from the Terra crisis.

Analysts Look for a Full Recovery in Bitcoin

While McGlone's outlook mentions potential downsides, several analysts are optimistic about Bitcoin's prospects for recovery, provided it breaches certain key resistance levels. Michaël van de Poppe suggests that Bitcoin must reach above the $91,000 to $94,000 range to gain upward momentum. Successfully moving past this resistance could direct the market toward $100,000 or even higher.

Similarly, analyst Ted Pillows emphasizes the importance of reclaiming the area between $92,000 and $93,000 for buyers to target a surge towards $98,000 to $100,000. Conversely, if this resistance isn’t overcome, he warns of a potential drop back to $88,000.

Bitcoin 1D Chart | Ted Pillows

However, market analyst Killa expressed caution, noting that Bitcoin's recent uptrend of 15% from lows may not have established a clear higher low yet. He points out that as Bitcoin approaches major resistance with declining trading volume, the first attempt to reclaim key levels is often rejected, potentially sending the price back for a retest. Killa predicts that Bitcoin could climb from $80,000 to $92,000 and then dip back to $88,000 before attempting to rally up toward $96,000, rather than rising directly from $80,000 to $96,000.

Bitcoin Chart | KillaXBT

Disclaimer: This article is informational and should not be interpreted as financial advice. The views expressed here are solely the author's opinions and do not necessarily reflect those of The Crypto Basic. Readers are encouraged to conduct their research before making any investment decisions. The Crypto Basic bears no responsibility for any financial losses.