Mike McGlone, a senior commodity strategist at Bloomberg, released a fresh set of projections for the cryptocurrency market and specifically Bitcoin (BTC) on Wednesday. The analyst opined that Bitcoin is set to turn $40,000 into its new support amid a refreshed bull market. He believes this trend would put the pioneer currency on track to reach $100,000.
Bitcoin Set to Make $40,000 New Support, Poised for Upward Trajectory: Mike McGlone
McGlone painted a bright picture for Bitcoin in the second half of this year within the recent Bloomberg Intelligence report. He explained that the currency is set to convert its previous resistance into a new support level and added:
“Bitcoin appears to have built a base around $30,000 that’s akin to $4,000 at the start of 2019, and we see performance parallels that could get the benchmark crypto back on track toward $100,000.”
“The longest period below its 20-week moving average since 2018-19 indicates weak longs have been cleansed within an enduring bull market,” McGlone noted.
He also pointed out that while there are similarities between the market of today and the one at the start of 2019, the supply and demand for Bitcoin are certainly disparate.
“What’s changed in about three years is sufficient to sustain more of the same for most of Bitcoin’s history — rising prices. Supply is declining while demand and adoption are rising in most countries that welcome open discourse and free-market capitalism,” he stated.
Dollar’s Dominance in Crypto Trading
McGlone asserted that China’s crackdown on digital assets will play out favorably for Bitcoin and the US dollar. To corroborate this claim, he cited three dollar-pegged tokens -- Tether USDT, Binance USD, and USD Coin -- which rank among the top six cryptocurrencies. Furthermore, he outlined that fiat currencies that are “antagonistic” to the USD, in particular, the Chinese yuan and Russian ruble, had no trading presence in virtual currencies.
“Free-market capitalism is on the rise via digital assets and unless enduring trends reverse, the U.S. dollar and Bitcoin stand to be primary beneficiaries,” McGlone highlighted while talking about the Chinese pushback against crypto.
The strategist was also confident that both Bitcoin and gold were poised for an upward trajectory in the second half of this year. He said the bearish sentiment from the first half “will turn out to be temporary and provide an opportunity for more-enduring bull markets starting from a discount.”