Bitcoins (BTC) skyrocketing above $ 50,000 this week is likely to continue into the fourth quarter as psychological resistance changes to support the next phase of the bull market, according to Mike McGlone, chief strategic officer at Bloomberg.
On Tuesday, the McGlone Bloomberg Galaxy Crypto Index from October 2021 circulated, which provided an overview of where digital assets can go for the rest of the year. In the report, McGlone suggested that Bitcoin’s resistance of $ 50,000 – a level that has proven insurmountable since scrapping in May – is about to reverse support.
“Bitcoin’s $ 50,000 resistance since May appears to have changed to cryptocurrency value in the fourth quarter,” he wrote, adding:
“We see the $ 40,000 mark as the launch pad for the $ 10,000 cryptocurrency in 4Q20. The parallels are visible about 4 times higher. The average price in 2021 is $ 44,500, and demand is growing among falling supply.”
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The Bitcoin price rose to $ 55,000 on Wednesday as a combination of technical, basic and emotional factors pushed the cryptocurrency to several months’ highs. As reported by Cointelegraph, Bitcoin is increasingly different from the larger macro environment. Case in point: Bitcoin’s 9% rally on Wednesday saw the Dow Jones fall more than 200 points and the US dollar gathered 0.4% against a basket of competing currencies.
The McGlone report indicated that bitcoin is still in discount compared to traditional stock market indices such as Nasdaq. “Rising stocks should maintain a high beta boom, but if the stock market falls, further stimulus will strengthen the digital reserve,” he explained.
The report also received positive feedback on Ether (ETH) among the widespread adoption of decentralized exchanges (DeFi) and non-fungal tokens (NFT). As for the price of ether, McGlone has set a target of $ 5,000, claiming that the path of least resistance is higher.