Considering its evolution from the past weeks, many analysts believe that Bitcoin’s only direction is down, with $20,000 being the next step for the digital asset. However, Bloomberg Intelligence’s senior commodity strategist Mike McGlone believes that there’s a bigger probability to see BTC at $60,000.
This isn’t the first time when McGlone issues such a bullish statement, but he correctly notes that Bitcoin has been consolidating since $30,000 since May and a rally able to double its value could be closer than we think.
A new, refreshed resistance target
“The more tactical-trading-oriented bears seem to proliferate when Bitcoin sustains at about 30% threshold below its 20-week moving average, allowing the buy-and-hold types time to accumulate,” the strategist belives.
Basically, during bull trends, the price of the token manages to stay above the three moving averages – 20-week EMA, 50-week EMA and 20-week SMA. However, bear trends can see prices closing below the 20-week EMA and the 50-week SMA.
At the time of the writing, Bitcoin is going through a third drop below a familiar trendline since 2018 and is targeting the 50-week SMA, of around $32,000, as support.
The Tether influence
Like many other coins, Bitcoin’s price was highly impacted by China’s complete ban on cryptocurrency operations, a decision which basically shut down all mining operations in the country. This triggered an interesting reaction, as the demand for digitized dollars against the Chinese yuan-to-dollar exchange rates kept growing.
“While China’s crackdown has had an impact on Bitcoin’s price as it hovers above $30K on 23 July, fundamentals have improved vastly since 2018 due to institutional FOMO. Bitcoin should recover to $50K by the turn of the year,” believes global payment network Mercuryo co-founder and CEO, Petr Kozyakov.
So, technically speaking, there’s a high chance of seeing the world’s biggest cryptocurrency, in terms of market cap, reaching new highs by the end of 2021. In fact, you never known when Mr. Musk tweets something interesting…