There have been many speculations about the Bitcoin market since the crash. Experts and amateurs alike are sharing their forecasts on the future. Although most forecasts have been negative, Mike McGlone’s is quite bullish. With his prediction that bitcoin will reach $20,000, the Bloomberg analyst has given hope to many.
Good News For Bitcoin
McGlone shared his prediction for the top cryptocurrency on the market via Twitter. Investors were overcome with panic when the value of digital assets fell below $20,000 and tethering was just slightly above that level. Although many believed that the decline was an indicator of a downtrend ahead, others believe it to have signaled the end for the asset.
Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story| Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story
The Bloomberg analyst points out that bitcoin is still in its early days, and not as scarce. This argument is not new. Investors have long believed that the limited supply of Bitcoin is what will drive its price up. Mainly, McGlone suggests that BTC is approaching “too cold” levels, and as such, $20,000 may well be the new $5,000.
$20,000 #Bitcoin May be the New $5,000 –
While the Bitcoin price is approaching too cold levels, this fundamental argument of increasing Bitcoin adoption in early days vs. decreasing supply could prevail. It makes sense that one of the best-performing assets in history would decline in 1H… pic.twitter.com/f5MImdhzgD— Mike McGlone (@mikemcglone11) June 15, 2022
This suggests that the downtrend is likely to end. If you look at the last bear market, you will see that the bottom occurred when the price fell below $6,000 in early 2022. The digital asset will continue to decline from here.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Are You Sure The Bottom Is In?
As one historic movement may tell one story about the Bitcoin bottom, the other stories can also be told. The last bear market was characterized by a decline in bitcoin prices of more than 80 percent from their all-time high. It has been closely observed throughout the bear markets. The bitcoin price is now less than 70% off its November peak. If bitcoin continues to fall in line with this trend, it may experience further declines.
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However, there is another trend that lends credence to McGlone’s prediction. This is because, despite the recent declines in bitcoin’s price, it has always been above the peak of its last cycle. Given that bitcoin’s last peak was a little under $20,000, the bottom may indeed be in if this trend is held.
The market is currently moving away from the established trend lines. The bearish market in 2022 has mirrored the bull rally of 2021. It is possible that there will be further breaking of historical trends.
Featured image by Cryptoknowmics. Chart at TradingView.com
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