Bloomberg’s Mike McGlone outlined a bullish stance on bitcoin, likening the $30,000 handle to the $4,000 level in 2019-2020 in terms of price-action.
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Bitcoin bulls see 2020 similarities
As outlined in the newsletter, BTC/USD bounced from the $28,800 lows, stabilising on Wednesday after a day of significant volatility. At the time of writing, the coin trades above $33,300.
While the widely regarded unnerving price action did not convince everyone that the bottom was in, it frames the dip as a secondary capitulation event, possibly exacerbated by negative news from China similar to the $30,000 flash crash in May.
For the senior market strategist at Bloomberg Intelligence, Mike McGlone, there was little reason to revisit a long-term bullish outlook on bitcoin despite the news.
McGlone argued that the $30,000 price point was just like $4,000 after the 60% price crash of March 2020 — a “line in the sand.”
“Selling Bitcoin around good support & similar dips below most means as about $30K this year hasn’t ended well, and if the key question this time around is whether it’s different, we see a more-enduring bull market,” he explained.
China’s crackdown on mining has divided commentators who argue about the effects of miner selling pressure as hash rate modestly reduces. Author of the Bitcoin Standard and its sequel, The Fiat Standard Saifedean Ammous recently stated that China’s miner relocation created additional selling pressure on the market.
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