Bloomberg, a top business news outlet has mostly been a Bitcoin skeptic in recent memory. However, this might be about to change as the Bloomberg analyst, Mike McGlone has called Bitcoin a caged Bull and has predicted the next resistance will be around $13,000.
McGlone is of the opinion that less volatility in recent memory has resulted in Bollinger bands reaching one of their lowest points ever. He continues on in the Bloomberg report and says that Bitcoin is up for a price breakout with the next likely resistance to be around $13,000.
According to him:
Our graphic shows the upward sloping 260-day moving average on the crypto and bands that roughly marked the 2019 high and 2020 low for guidance. By this measure, when Bitcoin exits its cage, about $13,000 is a good initial resistance target
However, he has also cautioned against this move and has said that the figure of $6500 must be defended in the long-term to help sustain the rally. If the cryptocurrency drops below this level, the bulls will be in trouble according to the financial analyst.
Multiple other analysts have stated on record that a downside move may negate the future of the currently dogged bullish sentiment within the market. However the figure to defend remains contentious with most of the analysts predicting it within $6000-$8000.
He also drew Bitcoin’s parallels with the price of bullion. According to his analysis the volatility of Bitcoin over a period of 260 days has dropped and it has become 4.4x of the Gold price index which is a good sign. Gold remains one of the most sought out after metals in the world and the demand for the precious metal has mostly increased in the wake of the horrifying Covid-19 pandemic.
Bitcoin, similarly has seen its value mostly stable in the wake of the pandemic despite the recent halving and has seen little upwards action as well, which shows market indecisiveness.
Bitcoin’s May 12 halving this year was a big development in the cryptocurrency’s history. The new supply of the coin has been reduced from 12.5 btc to 6.25 btc per 10 minutes. However, the halving euphoria has died down for a bit and many cryptocurrency enthusiasts are looking towards a bigger sustained rally later this year or perhaps next year.
Historically, after the halving, Bitcoin posts a sizeable bull run within one year or so. So, anticipation runs high and now more mainstream networks are reporting positively about the cryptocurrency.
Image source: wikimedia
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