198 Interactions, 2 today
Mike McGlone believes the chances favour a continuation to $40,000, but not everyone agrees.
Bitcoin (BTC) is “more likely” to reach $40,000 than $20,000, according to Bloomberg, as the largest cryptocurrency advances 6% in a single day.
McGlone eyes “enduring bull market bottom”
Data from TradingView showed BTC/USD reclaiming the $35,000 mark amid new bullish forecasts from analysts.
Mike McGlone, senior commodities analyst at Bloomberg Intelligence, contended in a tweet on Wednesday that Bitcoin will rebound to $40,000 sooner than its 2017 all-time highs of $20,000.
“Is Bitcoin Capitulating? “$40,000 Seems Likely Rather Than $20,000,” he wrote.
“The June 8 Bitcoin plunge and revisit of lower-end-range support around $30,000 had many of the earmarks of extreme bearish sentiment typical of more enduring bull-market bottoms.”
McGlone highlighted Bitcoin meeting its 20-week moving average as providing similar bottom signals to March 2020 — the height of the coronavirus-induced market crash.
Moving averages continue to play a key part in concerns over where the BTC price is headed next.
Bitcoin no longer “speculative crypto”
Bitcoin’s value has soared in response to rumours that El Salvador will be the first government in history to make it legal tender.
The action is a substantial counterpoint to the barrage of “bad news” triggers that have come from a variety of sources in recent days and weeks, including former US President Donald Trump calling it a “scam.”
Many market participants, as previously said, continue to favour a return to negative price action, such as a retest below $30,000 or even below.
0.5fib level from the latest leg down is crucial imo.
Current bounce could be corrective to that 0.5fib level and down from there again.
In case the ABC turns into a 1-5, it is opening the gates for more upside towards $42k pic.twitter.com/VweyziWnwy
— Crypto_Ed_NL (@Crypto_Ed_NL) June 9, 2021
However, for McGlone, the El Salvador announcement, which first appeared at last week’s Miami conference, is a clear turning point.
“Woodstock-Like Bitcoin 2021 Miami Supports Widespread Adoption” Belief: “The June 3–5 Bitcoin 2021 conference further validated our view that Bitcoin has transitioned from a speculative crypto to a global digital-reserve asset,” he tweeted on Tuesday.
At the time of writing, BTC/USD was still circling $35,000, but it had yet to convert the level into stable support.