Mike McGlone, a well-known commodity analyst at Bloomberg, claims that the $20,000 band for bitcoin is similar to the $5,000 band in previous years.
Well-known analysts suggest that the current level may act as a new price floor.
Has the price of bitcoin come down?
McGlone says the leading cryptocurrency is bottoming out based on a series of moving average data. The renowned analyst believes that $5,000, which was traded as a low in previous years, equates to the current price level of $20,000.
According to the analyst, it is only natural that the current decline is as strong as the strong Bitcoin rally. And, growth is imminent:
“$20,000 bitcoin could be the new $5,000. The fundamental case of early days of global bitcoin adoption versus dwindling supply could prevail as the price usually approaches very cold levels. It makes sense to have the best performance in history. One of the assets withheld will decrease in 1H.”
Looking at $5,000 as reported by a Bloomberg analyst, it appears that this area acted as a year-long strong support during the 2018 bear season. Similarly, the $5,000 support has become active again in 2020. Although BTC breached this zone several times in 2020, it did not deviate from support.
market mood
At present, market mood is read in a very negative way by the fear and greed indices. McGlone, on the other hand, described the bitcoin price drop as “typical” in his Twitter post.
The experienced analyst summarizes the current situation by presenting a comparison with the traditional markets. Bloomberg analysts attribute the policies of the US Federal Reserve (FED) to current markets:
“Bitcoin appears to be in the midst of a typical downtrend, particularly versus historically extreme spikes in commodity prices and bond yields, bullish equities and the most aggressive Fed in nearly 30 years.”
Mike McGlone: Positive
Mike McGlone has also done very positive analysis for BTC in the past. Experienced analysts have an optimistic outlook for Bitcoin in the long run and believe it will make a “big return”. He explained that during the reversal, almost the entire asset market would be affected:
“I think the big comeback is just starting. It could be like after 1929, maybe after 2008, or after the 1987 crisis. From the Miami and Toronto apartments to the stock market, it’s dues and all the risk properties will be affected. This is just beginning to happen. The biggest inflation in 40 years and most of the people’s lives are developing in this.”
McGlone says that once the period of high inflation ends, assets with limited supply will show a positive divergence. The veteran analyst has particular hopes for bitcoin after a potential fresh crisis. McGlone believes BTC will be the best asset on the planet:
“I think once we get through this period, bitcoin will become one of the best holdings on the planet… I think some of the best assets are gold, US bonds (perennial) and Bitcoin will be there. I think we’re going back to the interest in deflation, and the best way to look at deflation is to get a big spike in the price and then clear them. We’re experiencing that too…”
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