Senior commodity strategist Mike McGlone thinks $50,000 will probably flip from resistance to support for Bitcoin — and that $100,000 would be "meager" by the cryptocurrency's standards.
Bloomberg Intelligence’s Mike McGlone is generally bullish on crypto, and his outlook for October — looking ahead to the last three months of 2021 — is no exception.
Predicting stronger Bitcoin and Ether prices, the senior commodity strategist said “Bitcoin looks like a rested and discounted bull market.”
In an example of excellent timing, McGlone predicted that $50,000 will — probably — flip from resistance to support… on the day after Bitcoin finally hit this price for the first time since September 7. He said:
“If the benchmark crypto catches up a bit to the Bloomberg Galaxy Crypto Index (BGCI), Bitcoin would be closer to $70,000.”
He even believes that hitting $100,000 would now be “meager by Bitcoin standards.”
As for the No. 2 cryptocurrency, McGlone said Ethereum “resembles a consolidating and discounted bull market,” noting demand is rising as supply is being scaled back by the post EIP-1559 burn of 430,000 ETH since August — 50% of the new supply.
McGlone added that the 50% drop Bitcoin experienced after its May highs “appears to have simply cleansed the market of excess and speculation.” He added:
“Many of the reasons for the summer decline are bullish long term.”
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China’s Mistake
Specifically, he was referring to China’s latest — and harshest — attempt to drive out cryptocurrency speculation with a full trading ban. That ban, he said, “could prove futile and set the nation — not the crypto market's progress — back.”
By contrast, he pointed to America’s recent “embrace of crypto assets with open discourse and regulation” as a sign that China is heading in the wrong direction.
While noting that Beijing can continue to push back against digital currencies, McGlone said “we believe it's incapable of restricting a global free market of open-source software-based assets.”
“Reluctant acceptance might be inevitable,” he added.
