According to Mike McGlone, a well-known Bloomberg analyst, the current Bitcoin price of $20,000 would be equivalent to the low of $5,000 in recent years.
The famous analyst believes that the current price of Bitcoin could become its new low.
Has Bitcoin Hit Its “Bottom”?
Citing data tied to the moving average, McGlone says Satoshi Nakamoto’s cryptocurrency is approaching bottom. The famous analyst believes that $5,000, which was Bitcoin’s floor price for the past few years, is equal to the current price of $20,000.
According to the analyst, it is only natural that the current decline is so steep, as Bitcoin’s rallies are also strong. Mr. McGlone also predicts an impending BTC price surge:
“Bitcoin price of $20,000 may be the new $5,000. The fundamental case of Bitcoin’s early days of global adoption versus dwindling supply may prevail as the price approaches generally too-cold levels. It makes sense that one of the best performing assets in history would decline in an hour.”
It does indeed appear that the 5000 level was strong support throughout the bear market of 2018. This $5000 support was also reactivated in 2020. Although BTC declined below this region several times in 2020 , he did not move away from his support.
Currently, market sentiment is clearly negative according to the fear and greed index (Fear and greed). On the other hand, Mr. McGlone describes this drop in Bitcoin’s price as “typical”.
The Bloomberg analyst Explain the current situation by making a comparison with traditional markets. Thus, he believes that what is currently happening in the market results from the policies of the US Federal Reserve (FED).
“Bitcoin appears to be in the midst of a typical decline, especially due to extreme spikes in commodity prices and bond yields, stock price mean reversion, and the most aggressive Fed policies in 30 years” .
Mike McGlone remains optimistic
Newly, Mike McGlone also made very positive predictions for Bitcoin. The analyst is rather optimistic about the future of the asset and thinks it will make a “great comeback”. According to him, almost the entire crypto market would be affected during the recovery.
“I think the big comeback has only just begun. It may be like after 1929, or 2008 or after the 1987 crisis. From apartments in Miami and Toronto to the stock market, all risky assets will be affected. It’s only just begun. This is the highest inflation in 40 years and most people’s lives revolve around it”.
McGlone believes that after this period of high inflation is over, assets with limited supply will show positive divergence. He also thinks that after this new crisis looming on the horizon, Bitcoin could become one of the best assets on the planet.
“Once we get through this period one way or another, Bitcoin will become one of the best assets on the planet… I think some of the best assets will be gold, US (perennial) bonds and Bitcoin . I believe we will look at deflation again, and the best way to see deflation is to get a big price spike and then filter it out. We live this too…”
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