- McGlone based his projection on the law of supply and demand.
- He also suggested that Bitcoin could find a bottom at $30,000.
According to Mike McGlone of Bloomberg, the two leading cryptocurrencies, Bitcoin and Ethereum, are poised to surge if they can break free from persistent range-bound trading. McGlone argues that Bitcoin will emerge from the current market pullback on the strength of “bullish fundamentals.”
In a tweet shared today, he predicted that the value of both crypto assets could potentially spike, citing the law of supply and demand.
“What ends the #Bitcoin , #Ethereum range trade? Bullish fundamentals – By the rules of economics, a market with rising demand and shrinking supply will increase over time, suggesting Bitcoin could form a floor again around $30,000 as the $60,000 resistance ages,” wrote Bloomberg’s commodities strategist.
Source of the image: Twitter
McGlone’s view on Bitcoin aligns with the BTC price movements between the first and fourth quarters of last year.
Near the end of the second quarter (June), the pioneering cryptocurrency suffered heavy losses, sliding from about $35,700 to under $29,000 in four weeks. After hitting that low, Bitcoin launched a steady rally, reaching $42,000 four weeks later. By the end of August, Bitcoin closed around $50,000.
Although the market retraced in September, the flagship crypto still recorded an all-time high near $69,000 in November. McGlone predicts that Bitcoin’s bottom this time will be around $30,000, after which he expects an upside breakout.
Ethereum slides toward the $2,300 level
Market losses of roughly 6.5% over the past 24 hours pushed Ether below $2,330. The native token on the Ethereum network is trading at $2,325.30 — down more than 25% over the past seven days. Bitcoin is also feeling the latest impact from the Federal Reserve; it dropped roughly 2.85% on the day and lost support at $36,000 within the last hour.