Cryptocurrency Analysis

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Mike McGlone: Bitcoin is more likely to return to $60,000 than continue to fall



The main cryptocurrency in the world has risen in price by the end of Saturday by $1,500. In total, the growth of bitcoin has been going on for the fifth day and during this time it has managed to grow by $5,500. This is not the highest record value of growth, but it is still quite impressive. The most important thing now is to figure out the future prospects for bitcoin. Recall that the overwhelming majority of experts expect bitcoin to continue to fall in price over the coming months. Moreover, looking at the 24-hour timeframe, it becomes clear that now a new downward trend is forming rather than vice versa. The current growth is still too small to qualify for the status of the beginning of an uptrend. However, we also cannot fail to note that the price for the third time failed to overcome the important level of $29,700, so the current growth is partly quite logical: the price did not overcome an important support level, so a new round of growth began. Recall that in the past few months the price has been mainly between the levels of $ 29,700 - $ 40,700. That is, we have a kind of side channel. Accordingly, in the coming weeks, the price may tend to the upper border of this sideways channel.

At the same time, Bloomberg strategist Mike McGlone believes that Bitcoin has a much better chance of returning to the level of $60,000 per coin than falling to $20,000. McGlone explained his conclusions with technical patterns and stated that bearish sentiment prevails when quotes hold 30% below the 20-week moving average line. The analyst also said that the current picture is very similar to the situation in 2019, when Bitcoin started at $ 4,000 and rose to $ 14,000. Do recall that a conference dedicated to cryptocurrencies was recently held, during which Elon Musk, Jack Dorsey and Katie Wood spoke, who in general spoke very flatteringly about Bitcoin and said that a great future awaits it. It was after this conference that a new round of strengthening "digital gold" began. However, we still do not believe that Bitcoin will be able to start a new upward trend from its current position. It should be remembered that the period of consolidation after the completion of the bullish trend can take from one year to several years. During this time, the price can not only fall, but also rise. Therefore, the current growth of 5,500 dollars does not mean anything yet.



Technically, bitcoin bounced off the level of $29,700, so it can now continue to move up with a target of $ 40,700. It is far from the fact that the price will reach this level, since there are no significant fundamental reasons for such a strong growth in bitcoin now. By and large, and now bitcoin is growing only on the optimistic statements of the heads of Tesla, Twitter and Ark Invest. Thus, we expect bitcoin to return to the $29,700 level in the next couple of weeks and try to overcome it again.





Paolo Greco
Analytical expert
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