Mike McGlone, Bloomberg’s commodities expert, claims that the bitcoin price of $20,000 is comparable to the $5,000 price of a few years ago. The famous analyst feels that the peak of the 2017 bull run may well act as the new price floor.
Has bitcoin reached bottom?
With that, the word bottom has fallen again, and we are, once again, dealing with a major analyst who claims that we are near a bottom. Mike McGlone bases his analysis mainly on some moving averages.
$20,000 #Bitcoin May be the New $5,000 –
The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in 1H… pic.twitter.com/f5MImdhzgD— Mike McGlone (@mikemcglone11) June 15, 2022
“The $20,000 may well be the new $5,000,” says Mike McGlone in his analysis. We have now descended to the point where it is high time for the price to take another leap. Sentiment is frigid, everyone is terrified, and that often marks the moments when the bottom has been touched.
During the bear market of 2018, the $5,000 was a strong support zone for bitcoin, which was reactivated in 2020. Although bitcoin touched it several times in 2020, it often did not take long for the price to bounce back above it.
Sentiment in the Market
The current sentiment in the market is if we are to believe the Fear and Greed Index to cut. According to Mike McGlone, the US Federal Reserve in particular is to blame for the current market turmoil.
In his analysis, the Bloomberg commodities man talks, among other things, about the “most aggressive” Federal Reserve in about 30 years. For the time ahead, however, Mike McGlone sees things surprisingly sunny for bitcoin and expects a “big comeback” of the price.
“I think the big comeback has just begun. It could be like after 1929, maybe like after 2008 or like after the 1987 crisis,” the Bloomberg analyst said. After the period of high inflation, according to Mike McGlone, the assets with provable scarcity become the new kings of the market.
