The odds are on for a continuation to $40,000, Mike McGlone argues, but not everyone is so sure.
Bitcoin (BTC) is “more likely” to hit $40,000 than $20,000, Bloomberg argues, as the largest cryptocurrency gains 6% in a day.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
McGlone eyes “enduring bull market bottom”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reclaiming the $35,000 mark amid new bullish forecasts from analysts.
In a tweet on Wednesday, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, argued that Bitcoin would sooner see a return to $40,000 than its 2017 all-time highs of $20,000.
“Bitcoin Capitulation? $40,000 Appears More Likely Than $20,000,” he wrote.
“The June 8 Bitcoin plunge and revisit of lower-end-range support around $30,000 had many of the earmarks of extreme bearish sentiment typical of more enduring bull-market bottoms.”
McGlone highlighted Bitcoin meeting its 20-week moving average as providing similar bottom signals to March 2020 — the height of the coronavirus-induced market crash.
Moving averages continue to play a key part in concerns over where the BTC price is headed next.
BTC/USD vs. 20-week moving average chart. Source: Mike McGlone/Twitter
Bitcoin has been gaining on the back of news that El Salvador will be the first country in history to make it legal tender.
The move is a major counterpoint to the sea of “bad news” triggers that have come from various sources in recent days and weeks, including former United States President Donald Trump calling it a “scam.”
As Cointelegraph reported, many market participants still favor a return to bearish price action, such as a further retest of $30,000 or even lower.
For McGlone, however, the El Salvador announcement, which first surfaced at last week’s Miami conference, marks an unequivocal turning point.
“Woodstock-Like Bitcoin 2021 Miami Backs Mainstream-Adoption View: The June 3–5 Bitcoin 2021 conference further validated our view that Bitcoin has transitioned to a global digital-reserve asset and away from being a speculative crypto,” he tweeted on Tuesday.
At the time of writing, BTC/USD circled $35,000 still while so far not turning the level into reliable support.