How far can we get a Bitcoin bullish move and what will be its next resistance? A senior Bloomberg expert believes the BTC quote can be “stopped” at just $100,000.
With Bitcoin returning to stabilize above $50,000 since its April crash, the currency showed strength to seek new resistance while relying on support levels above $48,000.
During the month of August, the Bitcoin price movement made it very clear that the range between $40 and $50,000 would be its battleground in the short term.
Analyzing the last month, it is possible to notice that $43,000 was a strong support point., exerting buying pressure whenever the price approached that region.
On the other hand, the clearest resistance was close to the US$ 50,000 region.
Over the past few weeks, Bitcoin has tried to break it at different times. However, it was not successful, as it was corrected again shortly afterwards.
Currently, digital gold has returned to the $50,000 mark and seems to be “holding” there. The question is: for how long?
According to Mike McGlone, a well-known analyst and part of the Bloomberg intelligence team, Bitcoin will have its next resistance at around US$ 100,000.
In addition, he also mentioned that Ethereum tends to be highly valued, reaching $5,000.
For the analyst, portfolios without Bitcoin and Ethereum will be “naked” during this new market cycle.
“We see Ethereum on the way to $5,000 and $100,000 for Bitcoin. Portfolios with a combination of gold and equities seem to be getting more and more stripped without Bitcoin and Ethereum in between.”
McGlone’s optimism is based on historical data on Bitcoin and gold.
He highlighted in his article that an index formed by Bitcoin, Gold and Bonds is performing better than the S&P 500 since 2015.
“Our chart shows the Bitcoin-Gold-Bounds index topping the S&P 500 since the end of 2015, but even more since the beginning of 2020 along with the rapid growth of the Central Bank’s G4 balance sheet.”
Speaking of Bitcoin price, a question that is always raised is the famous Stock-to-Flow model of PlanB.
In late August, the pattern maker posted that the August closing price was pretty close to what he imagined.
“Bitcoin closing price in August $47,156…like clockwork”
— PlanB (@100trillionUSD) September 1, 2021
Like the analyst, the model of Stock-To-Flow de PlanB is another that also predicts Bitcoin to $100,000 by the end of 2021.
Despite the optimistic analyses, it is good to be cautious in upward movements in the market, especially when the period is for the discovery of new prices.