After exploring the likelihood of capitulation in a recent tweet, Bloomberg Intelligence senior commodity strategist Mike McGlone feels bitcoin is “more likely” headed for $40K rather than $20K.
El Savador Bitcoin Adoption Will Propel Bitcoin
Following El Salvador’s announcement that bitcoin (BTC) is now legal cash in the country, bitcoin markets have increased on Wednesday. Despite the good news, some people are still unsure if the “bottom has fallen out.”
BTC has been predicted to go below the $30K mark, possibly even below the $20K mark. In a note to Bitcoin.com News, Stephen Kelso, head of markets at ITI Capital, noted that there have been reports that BTC might plummet to this low threshold.
“Speculative reports suggest that bitcoin could soon drop to $20,000, referencing the looming bearing cross of the 50 and 200 daily moving averages,” Kelso explained. “However, there are still some positive signs for the price of digital assets to build again, for example the encouraging price action overnight, stabilising funding spreads for futures and a decline in the implied volatilities of options,” the ITI Capital executive added. Kelso further detailed:
More significantly, there has been continued accrual of bitcoin by bigger institutional wallets and Michael Saylor’s Microstrategy has increased the size of its current junk bond offering to $500m to buy more BTC at these levels. These will have more impact on macro hedge funds who will look to take advantage of the pullback opportunity.
Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, explained his view of the situation on Twitter.
“Bitcoin Capitulation? $40,000 Appears More Likely Than $20,000 — 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 tweeted.
#Bitcoin Capitulation? $40,000 Appears More Likely Than $20,000 — 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. pic.twitter.com/mzaqs50Kjp
— Mike McGlone (@mikemcglone11) June 9, 2021
Related article | Bloomberg Analyst Sees Bitcoin at $50,000 on Anti-Gold Sentiment
McGlone Believes That Bitcoin Is Now A Global Digital-Reserve Asset
McGlone also suggested that the Bitcoin 2021 conference in Miami had “Woodstock-like” bitcoin acceptance in a handful of tweets previous to his evaluation of BTC markets on Wednesday.
“The June 3-5 Bitcoin 2021 conference further validated our view that Bitcoin has transitioned to a global digital-reserve asset and away from being a speculative crypto,” McGlone added.
The Bloomberg senior commodity strategist has also tweeted about gold’s price rise in recent times and noted that gold’s previous correction looks complete. “Gold Above $2,000, Silver $30 – May Not Wait for June Unemployment – Weaker-than-consensus April and May U.S. unemployment reports support our key takeaway that gold and silver are ripe to resume their bull markets. Headwinds from rising bond yields & Bitcoin have been alleviated,” the strategist added.
Related article | Bloomberg: Futures and Fund Flows Show Bitcoin Is Replacing Gold
Featured image from Pixabay, Chart from TradingView.com