Bitcoin (BTC) rose to seldom seen price levels, currently between $ 17,000 and $ 18,500, before deciding on the next move. Recently gold has been consistently breaching the gains in the US dollar, overtaking $ 2,000 an ounce, before retiring and consolidating its value. Mike McGlone, a strategist at Bloomberg Intelligence, thinks the same could happen with BTC.
“In the short term, $ 20,000 is a very good resistance,” he said in an interview with Bloomberg on Wednesday.
“I’m afraid it will probably do the same thing as gold. It was $ 2,000 and it has since been consolidated in the beef market.”
Bitcoin rose to $ 18,500 on Tuesday and dropped to nearly $ 17,200 shortly thereafter, according to TradingView.com data. Since then, the asset has traded sideways and has been standardized between the two levels. In the long term, McGlone expects Bitcoin to continue growing in the coming years. It is to explain:
“The most important thing about Bitcoin this year is very simple – it only added one at the start of the number. Remember it was about $ 7,000 at the end of last year. What worries me is that if you look at past performance, which is likely an indicator of the future, in the year Or the next two years, you can add a zero to the end of the number.
Referring to $ 7,000 by the end of 2019, Bitcoin added one to that number, which stood at $ 17,000. Adding a zero to $ 17,000 gives a forecast of a $ 170,000 future. However, Bitcoin actually hit $ 18,000 during McGlone’s interview, but adding a zero could undoubtedly mean a future price of $ 180,000.
McGlone touched on a number of other key points during the short clip, including mentioning bitcoin price fluctuations. He explained that “Bitcoin has become the digital version of gold.” “The big thing that is happening this year is the decrease in Bitcoin’s volatility,” he said. “In fact, this is the lowest for gold.”
The strategist also explained Bitcoin’s low volatility in relation to the Nasdaq Index, a general measure of the market. “Every other risk assessment on the planet, the volatility increased, and bitcoin declined.”
McGlone also mentioned Bitcoin’s “institutional FOMO” in relation to the monetary pressure. This year, a number of regular financial players have bought batches of bitcoins such as MicroStrategy and Jack Dorsey’s Square.