Recession imminent? The bullish surge of Bitcoin and Dogecoin could be a trap, according to McGlone.

Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, has discovered something unusual on the charts and it is attracting attention. At first glance, it seems like a random coincidence. But when the performance of Bitcoin compared to gold begins to reflect almost exactly the price action of Dogecoin, it is worth digging deeper. McGlone believes this pattern may indicate something more serious: a potential warning sign about the next direction of the crypto market.

Two different assets, a similar model Bitcoin and Dogecoin seem to have not much in common. Bitcoin is often regarded as "digital gold," while Dogecoin started as a meme. However, McGlone's analysis shows that their price action over the past year has been quite similar. Both cryptocurrencies surged at the end of 2023 and reached local highs at the beginning of 2024. Since then, both have declined and moved sideways in a similar pattern. Sitting on the support chair—But for how long? Currently, the Bitcoin price compared to gold and the Dogecoin price are both above the long-term upward trend lines. These trend lines act as a safety net—the key support levels have been maintained so far. But McGlone warns that they may not last much longer. He does not view the current recovery as the beginning of a new bull market. Instead, he sees it as a pause or a temporary recovery in the long-term downtrend. The risk of recession may severely impact cryptocurrency. McGlone's main concern is not just the charts. It's the economy in general - particularly the U.S. stock market. Many people predicted that a recession would occur in 2023, but that never happened. McGlone believes that the delay does not mean it will not happen. In his view, the recession is still coming - and when it does, high-risk assets like Bitcoin and Dogecoin may be severely affected. In summary, the current price increase may not be the beginning of something bigger. It could be the calm before the next downturn. Update Dogecoin price Dogecoin is making its own moves. This meme coin has increased by nearly 10% in the past 24 hours and is currently trading around $0.1827. It is aiming for the level of 0.1885 dollars, but first it needs to break through the resistance level of 0.186 dollars. That level could determine whether this rally continues or halts. However, there are still cautious signs. The Relative Strength Index (RSI) on the 4-hour chart has risen above 83, putting Dogecoin into the "overbought" zone. This often signals that a short-term correction may occur. Update Bitcoin price Bitcoin is also showing strength. It has surpassed the $94,000 mark, increasing nearly 6% in the last 24 hours. McGlone's analysis raises doubts about how long this rally will last. We can only wait and see. The market seems strong on the surface, but inside, the signals are becoming harder to ignore.