Mike McGlone Says $20,000 Is The New $5,000 For Bitcoin, But Is He Right?

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With the recent Bitcoin price crash has come a number of speculations out of the market. Amateurs and experts alike have been giving their predictions on what they believe will happen going forward. While most have been bearish, the forecast from Mike McGlone is a rather bullish one. The Bloomberg analyst has sparked hope in the hearts of some with his forecast that $20,000 is the new $5,000 for bitcoin.

Good News For Bitcoin

McGlone took to Twitter to share his forecast for the leading cryptocurrency in the market. Panic had washed through investors when the digital asset had declined to the $20,000 level, tethering just slightly above it. While many believe that this was a signal for a further downtrend to come, some have said that it may have marked the bottom for the asset.

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In his tweet, the Bloomberg analyst points to the early days of adoption in contrast with the diminishing supply of bitcoin may prevail. This argument is by no means a new one. The limited supply of BTC has long been one of its pulls for investors who believe that in the end, the scarcity of the cryptocurrency will be what drives its price higher. Mainly, McGlone suggests that BTC is approaching “too cold” levels, and as such, $20,000 may well be the new $5,000.

What this implies is that the bottom of the current downtrend may be in. Looking at the previous bear market, it is obvious that the bottom was clocked right when the price had fallen below $6,000 in the early days of 2022. If so, then there is no further decline for the digital asset from this point.

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BTC resumes downtrend | Source: BTCUSD on TradingView.com

But Is The Bottom In?

Just as one historical movement can tell one story of the bitcoin bottom, so do the others. Now, it is known that the last bear market saw the price of bitcoin declined more than 80% from its all-time high. This trend has been closely followed through the bear markets. Despite the brutal crash in the last couple of days, bitcoin is still less than 70% down from its November all-time high. Given this, there may be more decline to come if it was to follow this trend.

Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In?

However, there is another trend that lends credence to McGlone’s prediction. This is the fact that no matter the decline, the price of the digital asset has never fallen below the previous cycle peak. Given that bitcoin’s last peak was a little under $20,000, the bottom may indeed be in if this trend is held.

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One thing to note though is that the present market has been deviating from previously established trends. It had begun with the multiple bull rallies of 2021 and now has carried into the bearish market of 2022. So, maybe there will be more breaking of historical trends to come. 

Featured image from Cryptoknowmics, chart from TradingView.com

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