HomeCryptoBitcoin's $50K resistance to become support in Q4 — Bloomberg commodity strategist

Bitcoin’s $50K resistance to become support in Q4 — Bloomberg commodity strategist

Bitcoin’s (BTC) meteoric rise above $50,000 this week is probably going to proceed nicely into the fourth quarter, because the psychological resistance flips to support throughout the subsequent leg of the bull market, in accordance to Bloomberg’s senior commodity strategist Mike McGlone.

On Tuesday, McGlone circulated the October 2021 version of the Bloomberg Galaxy Crypto Index, which supplied an outline of the place digital belongings may very well be headed for the remainder of the yr. In the report, McGlone speculated that Bitcoin’s $50,000 resistance — a degree that has confirmed impenetrable for the reason that May dump — was about to flip support.

“Bitcoin’s $50,000 resistance point since May appears ripe to become the crypto’s support value in 4Q,” he wrote, including:

“We view the $40,000 mark as similar to the crypto’s $10,000 launchpad from 4Q20. Parallels are visible from about 4x higher. The 2021 average price is $44,500, and adoption and demand are on the rise vs. diminishing supply.”

Related: Bitcoin beats shares, commodities to become best-performing asset of 2021

The BTC worth surged towards $55,000 on Wednesday, as a confluence of technical, elementary and sentiment components pushed the cryptocurrency to multi-month highs. As Cointelegraph reported, Bitcoin is more and more decoupling from the broader macro-environment. A case in level is that Bitcoin’s 9% rise on Wednesday got here because the Dow Jones plunged over 200 factors and the United States greenback rose 0.4% in opposition to a basket of competing currencies.

McGlone’s report indicated that Bitcoin stays at a reduction in comparison with conventional inventory market indexes just like the Nasdaq. “Rising equities should keep high-beta Bitcoin buoyant, but if the stock market drops, more stimulus will solidify underpinnings for the digital reserve asset,” he defined.

The report additionally had optimistic issues to say about Ether (ETH) amid the widespread adoption of decentralized exchanges (DeFi) and nonfungible tokens (NFTs). Regarding the Ether worth, McGlone has set a goal of $5,000, arguing that the trail of least resistance is increased.