Bloomberg analyst Mike McGlone said in his assessment of the market outlook for 2026 that both silver and Bitcoin face downside risk based on 50-week moving averages. However, the reasons for the potential decline in these two assets are quite different, according to McGlone.
According to McGlone’s analysis shared on the X platform, the price of silver is around $72 per ounce. This level is approximately 73% above silver’s 50-week moving average. The analyst noted that premiums this high have only been seen once before, in 1979.
At the time, the price of silver peaked in 1980 at about $50, but has since plummeted 52% to a level of about $15.50. McGlone emphasized that silver is expected to surpass its 1979 closing price 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 side. Bitcoin is currently trading at about $87,000, about 13% below its 50-week moving average, McGlone said.
Historical data shows that such discount levels often indicate that the market is searching for a bottom. The analyst noted that given similar cycles in the past, a 50% to 55% drop in Bitcoin should not be ruled out.
*This is not investment advice.
