Bitcoin has been on a sharp recovery since the March lows of $3,700. Even after a brutal rejection at the $10,500 resistance level, the asset is still up more than 160 percent from the lows, outpacing any other multi-billion-dollar, investable asset — save for Ethereum anyway.
Although many have prescribed as the aforementioned rejection as a death knell of the multi-month bull trend, a prominent strategist says that if Bitcoin doesn’t continue to rally, something needs to go “really wrong.”
Like the past five reports McGlone released on the topic of Bitcoin, he held a bullish tone, going as far as to say that “something needs to go really wrong for BTC not to appreciate” as aforementioned.
The analyst’s bullish sentiment boiled down to a confluence of factors, which are as follows:
Bitcoin is outperforming the “Crypto Gaggle,” showing that it is on bull market footing. Altcoins may eventually follow suit.
Bitcoin’s price action is “mirroring” price action seen after 2016’s halving. BTC continuing to follow this historical trend will allow the asset to “approach the record high of about $20,000 this year.”
Volatility is decreasing due to rapidly increasing futures and options adoption, keeping prices “tilted toward appreciation.”
Bitcoin has the “highest-for-longest 52-week correlation and beta ever” with gold. With gold expected to increase due to the aforementioned money-printing, BTC should follow.
“Bitcoin will be owned unlevered. Could the price retest $3,000? Absolutely. As the SPX rolls over and tests 2,000 expect all asset classes to puke again. As violent as the Q1 collapse in asset values was, we have almost 100 years of imbalances to unwind the ancien régime.”
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org