The famous analyst suggests that the current level can act as the new price floor.
Has Bitcoin Price Bottomed?
McGlone states that the leading cryptocurrency is approaching the bottom, based on a series of moving average data. The famous analyst thinks that $5,000, which was traded as the bottom level in the past years, is equal to the current price level of $20,000.
According to the analyst, it is natural that the current drop is as strong, as Bitcoin rallies are strong. And, rise is imminent:
“$20,000 Bitcoin may be the New $5,000. The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in 1H.”
Looking back at $5,000 pointed out by the Bloomberg analyst, it seems that this region worked as a strong support for one year during the 2018 bear season. Similarly, support of $5,000 was re-activated in 2020. Although BTC briefly breached the region several times in 2020, it did not stray from support.
Currently, the mood of the market is read quite negatively according to the fear and greed indexes. On the other hand, McGlone described the decline in Bitcoin price as “typical” with his Twitter post.
The experienced analyst summarizes the current situation by presenting a comparison with traditional markets. Bloomberg analyst sees the US Federal Reserve’s (FED) policies as responsible for current markets:
“Bitcoin appears to be in the midst of a typical drawdown, notably vs. historically extreme spikes in commodity prices and bond yields, rapidly reverting equities and the most aggressive Fed in about 30 years.”
Mike McGlone: Positive
Mike McGlone has also made very positive analyzes for BTC in the past days. The experienced analyst has a bullish outlook for Bitcoin in the long term and believes it will make a “big comeback.” He reported that during the reversal, almost the entire asset market would be affected:
“I think the big comeback is just getting started. It may be like after 1929, maybe after 2008 or after the 1987 crisis. From apartments in Miami and Toronto to the stock market, it’s past due and all risk assets will be affected. This is just starting to happen. The biggest inflation in 40 years and most people’s lives is evolving into this.”
McGlone maintains that after the period of high inflation is over, assets with limited supply will show a positive divergence. The experienced analyst has a special expectation for Bitcoin after the possible new crisis. McGlone believes that the best asset on the planet will be BTC:
“I think once we get through this period somehow, Bitcoin will become one of the best holdings on the planet… My view is that some of the best assets to have will be gold, US bonds (perennial) and Bitcoin. I think we’re going back to interest in deflation, and the best way to see deflation is to get a big spike in prices and then clean them up. We are also experiencing this…”