Mike McGloon, a Bloomberg commodities analyst, said the $ 20,000 bitcoin range could act as a new price threshold, similar to $ 5,000 in previous years.
The analyst says the leading cryptocurrency is now approaching historically “too cold” price levels based on a series of moving averages.
“$ 20,000 bitcoin could be the new $ 5,000 – The main case of the first days of global adoption of bitcoin against declining supply may prevail, as the price is approaching usually too cold levels. It is logical that one of the best performing assets in history will decrease [the first half of 2022]”
Source: Mike McGlone / Twitter
During the bear market in 2018, the $ 5,000 price zone served as support for bitcoin for about a year. In 2020, the $ 5,000 level also acted as support for bitcoin, although BTC briefly violated the zone several times.
As bad as market sentiment may look now, McGloon describes the decline in bitcoin as “typical” and points to how it is happening along with growing volatility in other traditional assets.
“The rise of bitcoins against the rise of stocks, bonds, commodity instability – bitcoin seems to be in the midst of a typical decline, especially against historically extreme jumps in commodity prices and bond yields, fast-moving stocks and the most aggressive Fed of about 30 years ”
Source: Mike McGlone / Twitter
The analyst has previously been on the rise for bitcoin in the long run and predicted that BTC would explode along with gold and US bonds during what he called a “big turnaround”.
“I think what is going to happen is a big turnaround. It’s just beginning. It may be like after 1929. [but] I think it will be like after 2008 [or] perhaps as after the 1987 crash. So risky are all the risky assets, from apartments in Miami and Toronto to the stock market. The biggest inflation in 40 years is just beginning to happen, and most people’s lives are starting to see it.
After going through this period, I think bitcoin will become one of the best assets on the planet to hold. This is my main case …
My perspective is that some of the best assets to own will be gold, US long-term bonds and bitcoin. I think we are going back to deflation and the best way to achieve deflation is to get a big jump in prices and then reduce them. That’s what we do. We are in the first days of redness. “
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