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Bitcoin price gains 6% as Bloomberg analyst favors $40K over $20K next

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 406 Views

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 no longer “speculative crypto”

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. 


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