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Despite Bitcoin and Ethereum's recent dips, Bloomberg's Mike McGlone sees a bullish end in sight to the lead cryptocurrencies' sideways range trading.
Mike McGlone, Bloomberg Intelligence Senior Commodity Strategist, explains the basis of bullish fundamentals for the market using the law of demand and supply. He says, ''By the rules of economics, a market with rising demand and declining supply will go up over time.''
What Ends #Bitcoin, #Ethereum Range Trade? Bullish Fundamentals - By the rules of economics, a market with rising demand and declining supply will go up over time, suggesting that Bitcoin may be forming a bottom again around $30,000 as $60,000 resistance ages. pic.twitter.com/kyMYHoYreg
— Mike McGlone (@mikemcglone11) January 27, 2022
In late June 2021, Bitcoin printed a death cross and then went on to mark bottom lows of $28,800. Exactly a month after, Bitcoin recovered momentum, culminating in the printing of a golden cross in mid-September. As a result, Bitcoin reached all-time highs of $69,000 in November 2021.
According to Mike McGlone, in similar circumstances, Bitcoin might be forming a bottom again around $30,000 as the $60,000 resistance fades.
In an earlier tweet, the Bloomberg strategist stated, ''The fact that Bitcoin is an up-and-coming asset, with less than $1 trillion market cap vs. about $100 trillion of global equities, that got a bit extended may give the crypto an advantage. Our graphic depicts a bottoming indicator for Bitcoin -- about 30% below its 20-week avg.''
Bitcoin and Ethereum bullish predictions
Despite Bitcoin and Ethereum's recent dips, bullish predictions are still holding strong for the lead assets.
Ark Invest estimates Ethereum's market value might reach $20 trillion and Bitcoin's price could surpass $1 million by 2030, judging by BTC's use cases and how Ethereum grabs market share from traditional finance (TradFi).
Ethereum reaching or possibly surpassing a $20 trillion market capitalization in the next 10 years might bring the price to about $170,000 to $180,000 per coin.
Bitcoin trades at $36,758, while Ethereum was seen at $2,462 at press time.
Alex Dovbnya
Vladislav Sopov
Dan Burgin