Bloomberg commodity strategist Mike McGlone has weighed in on Bitcoin’s outlook for the near future and revealed he believes the cryptocurrency is more likely to move upward toward the $60,000 than to drop back down to $20,000.
According to a section shared by Bloomberg’s exchange-traded fund (ETF) senior analyst Eric Balchunas, McGlone wrote in a report that bitcoin’s current consolidation above the $30,000 mark is similar to BTC’s consolidation around $4,000 after the 2018 bear market, before the cryptocurrency moved up to $14,000 in a few months.
Per McGlone, the more “tactical-trading-oriented bears seem to proliferate when Bitcoin sustains at about 30% threshold below its 20-week moving average, allowing the buy-and-hold types time accumulate.”
Bitcoin’s consolidation above $30,000, as Daily Hodl reports, could be allowing accumulation that will lead to a sustained uptrend in the near future. McGlone noted that it’s “more a matter of supportive maturation within a longer-term pricing uptrend than a signal that bitocin is destined for dark days.”
The analyst also weighed in on China’s crackdown on cryptocurrency trading and mining, noting it could signal the country’s economic ascent is over, which would benefit the U.S. dollar and BTC.
McGlone also pointed out that leading stablecoins in the cryptocurrency space are backed by the U.S. dollar, using USDT, USDC, and BUSD as examples of these coins.
As reported, the analyst has accurately predicted the price of BTC was going to break through its previous all-time high this year, at the time pointing to “refreshed” bull markets in cryptocurrencies and gold.
Earlier this year, McGlone revealed he believes BTC’s price could still hit $100,000 this year. In a tweet, the analyst revealed that a primary factor cited for the cryptocurrency’s correction in May was its excessive energy use, but noted that this use represents “the strength of the world’s largest decentralized network.”
DISCLAIMER
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
IMAGE CREDIT
Featured image via Pexels
