Bloomberg analyst Mike McGlone, in his assessment of the market outlook for 2026, said that both silver and Bitcoin face downside risk based on the 50-week moving average. However, according to McGlone, the reasons for a potential decline in these two assets are quite different.
According to McGlone’s analysis shared on the X platform, the price of silver is around $72 per ounce. This level is about 73 percent above silver’s 50-week moving average. The analyst noted that such a high premium had only been seen once before, in 1979.
At that time, the price of silver peaked at around $50 in 1980, then declined sharply by 52% to levels around $15.5. McGlone pointed out that silver is expected to rise above its 1979 closing level of $32.2 for the first time by the end of 2025, increasing the risk of overvaluation.
The situation is different on the Bitcoin front. According to McGlone, Bitcoin is currently trading at around $87,000, about 13% below the 50-week moving average.
Historical data shows that such reduced levels often indicate that the market is looking for a bottom. The analyst noted that given similar past cycles, the possibility of a 50-55% drop in Bitcoin should not be ruled out.
*This does not constitute investment advice.
