Bloomberg commodity analyst Mike McGlone says the $ 20,000 Bitcoin range can act as a new minimum price, similar to the $ 5,000 of years past.
The analyst says the flagship cryptocurrency is now approaching historically “too cold” price levels, based on a series of moving averages.
“$ 20,000 Bitcoin may be the new $ 5,000: the key case in the early days for global adoption of Bitcoin versus declining supply may prevail as the price approaches normally too cold levels. It makes sense for one of the best performing assets in history to decline [the first half of 2022]. ”
Source: Mike McGlone / Twitter
During the 2018 bear market, the $ 5,000 price area served as support for Bitcoin for about a year. In 2020, the $ 5,000 level also acted as support for Bitcoin, although BTC briefly broke the zone a couple of times.
As bad as market sentiment may seem now, McGlone describes the fall of Bitcoin as “typical” and points out how it is occurring along with the increase in volatility in other traditional assets.
“Bitcoin Adulting vs. Increasing Stock, Bond and Commodity Volatility: Bitcoin appears to be in the midst of a typical fall, especially in the face of historically extreme peaks in commodity prices and bond yields. they reverse quickly and the Fed more aggressive in about 30 years. ”
Source: Mike McGlone / Twitter
The analyst has previously taken a long-term bullish stance on Bitcoin and predicted that the BTC will explode along with US gold and bonds during what he refers to as a “big reversal”.
“It simply came to our notice then. It’s just beginning. It could be like the aftermath of 1929, [but] I think it will be like the aftermath of 2008 [or] perhaps as after the 1987 crash. It’s so overdue, and all the risky assets, everywhere, from condominiums in Miami and Toronto to the stock market. It’s just starting to happen and the biggest inflation in 40 years and most people’s lives is starting.
Once we get past that period, I think Bitcoin will become one of the best assets on the planet to have. This is my base case …
My perspective is that I think some of the best assets to own will be gold, US long bonds and Bitcoin. I think we will go back to deflation and the best way to achieve deflation is to raise prices a lot and then eliminate them. This is what we are doing. We are in the first days of emptying. “
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