The $10K Bitcoin Scenario Is Back, But What Would It Take to Get There?

• Bitcoin price faces three Bitcoin crash signals as the Bitcoin $10K prediction, Bitcoin sell signals, and Fed Hike expectations put pressure on the market
• Mike McGlone sees a sustained 20% S&P 500 drawdown as a scenario that could push Bitcoin toward $10K
• The $10K level is a bearish scenario, not a confirmed Bitcoin price target or consensus forecast

Bitcoin price predictions are continuously evolving, as the cryptocurrency market intertwines its fate with the outer macroeconomic backdrop. Bitcoin’s price has recently climbed to the $80K market, but a new bearish scenario could now see it fall toward $10K. This scenario has been outlined by Bloomberg Intelligence strategist Mike McGlone. The analyst is of the view that the asset remains closely tied to the stock market. The new Bitcoin sell signals highlighted by McGlone could put further pressure on its price and potentially take it as low as $10K. What is McGlone actually trying to convey? Let’s find out.

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Three Bitcoin Price Sell Signals

McGlone has outlined a new Bitcoin $10K prediction on X. Tweeting his analysis on the same, McGlone shared how Bitcoin has three sell signals that are worth paying attention towards. Firstly, Bitcoin’s struggle around the $80K price level after its recent recovery is the first sign.

The second sign can be triggered through the Federal Reserve. Markets have lately been pricing in further rate increases. If this continues, Fed rate expectations can weigh more on Bitcoin price, making it harder for it to scale ahead.

“My graphic highlights three reasons the crypto could fall: its recent bounce to $80,000 resistance, fed funds futures in one year (FF13-FF1) pricing 70 bps of hikes, and the stretched S&P 500 vs. its 200-week moving average. Bitcoin fits into my stock-puppet category due to its high correlation with the SPX, especially when beta declines, and its position as the first cryptocurrency now competing with millions of others.”

The third signal per McGlone is related to the stock market. McGlone shared that the S&P 500 is stretched relative to its longer-term trend. This is leaving room for the risk assets to decline further, making them vulnerable to sharper corrections.

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What Could Send Bitcoin Spiralling to $10K?

One of the key arguments behind McGlone’s bearish scenario is equities. The Bloomberg analyst shared how Bitcoin has roughly matched the S&P 500’s performance over the past 5 years.

The asset has also been trading with almost three times the volatility of the S&P 500.

“Bitcoin may be tracking toward its enduring pivot around $10,000, and one simple factor could get it there—about a 20% drawdown in the SPX that persists for a while, as has happened historically. Proving that scenario wrong may require the crypto to sustain divergent strength.”

In this bearish scenario, McGlone argues that a roughly 20% decline in the S&P 500 that persists for some time could push the Bitcoin price toward the $10K level. However, this is simply a scenario outlined by McGlone, not a definitive Bitcoin price forecast or Bitcoin crash market prediction.

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