According to the Senior Commodity Strategist at Bloomberg Intelligence, Mike McGlone, bitcoin is headed towards a bullish trend and might reach $10,000 again.
In a series of tweets where he analyzed various markets such as metals, oil, and crypto, McGlone stated that Bitcoin has founded its support and that it is a part of its progression towards digital gold.
Additionally, he noted that the launch of CME Group’s Bitcoin options in the first quarter of 2020 might initiate a new rally. Bitcoin has found a steady support level between $6,500 and $8,000 for the first time since its bullish run in May. For now, the first resistance will be the $10,500 price mark, but with the launch of CME’s options, a long position is warranted, states McGlone.
While Bloomberg’s top market analyst has a bullish stance, Tone Vays (a famous cryptocurrency trader) claims that we might reach lower points as Bitcoin can fall further. Interviewed by BlockTV, Vays stated that Bitcoin may correct even more from its short bull run in May this year.
Commenting on the current state of the market, Vays pointed out that it is typical for Bitcoin to correct up to 40% before moving up and that the current market corrected at 42%. Despite the traditional correction, Bitcoin may dip even further as he remarked the jump of $3,000 to $14,000 ‘virtually exponential’. Vays stated that Bitcoin has to correct further before he ‘feels comfortable to go all-in on Bitcoin with whatever savings he has left.’
Another crypto analyst and Co-founder of Blockroots, Josh Rager, shared a similar sentiment. Rager expects that the market will face another major pullback and that Bitcoin will have to reach $8,800 in order to reach its previous momentum.
He added that sideway price movement is normal after extreme price reductions and that Bitcoin reached reliable support at $8,000. However, the market will turn bullish only if Bitcoin closes at $8,800 in the near future.
While there is a certain possibility that the altcoin market may breathe for a while and even have its own run, it is very unlikely as the entire cryptocurrency market is looking for a signal that will mark a decisive market direction. At the time of writing, both BTC and ETH have increased in value, at 3.5% and 3.8% respectively.
The crypto market is definitely at a phase of uncertainty. The combination of buying interest at the range of $7,000 and weekly charts shows that the next step will show massive market volatility. While pessimistic traders regularly open short positions to profit on Bitcoin’s downfall, bullish traders keep buying on each price dip, creating an equilibrium of sorts.
Nevertheless, even the current peace in terms of price stability might turn into yet another highly-volatile market. If the buying pressure is exhausted by no upward price movement, the bears may win the round and take the market even further down. Now that we are also close to the halving of Bitcoin’s mining rewards, the next few price movements will result in a decisive market trend.