Bitcoin At $20K Could Be ‘New Bottom,’ Commodity Expert Suggests, And Here’s Why


Bitcoin has been in an increasingly shaky state and is down as much as 50% compared to its all-time high. All eyes are on the alpha crypto dog, keeping an eye on the next price action.

On the other hand, many market analysts believe that the decline in the trading value of BTC is a jumping board towards explosive growth.

In fact, in a recent tweet, Mike McGlone, chief commodity strategist at Bloomberg Intelligence, said that the cryptocurrency’s decline is normal because the currency is still trying to beat it as it faces a massive test.

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Bitcoin slump – an unnecessary evil?

McGlone posted on Twitter:

“$20,000 Bitcoin could be the new $5,000. The base case may prevail in the early days of crypto adoption versus diminishing supply as price approaches frigid levels. It stands to reason that one of the best performing assets in history will fall in 1H.”

McGlone has always been very bullish on BTC, believing that the crypto king will regain his dominance and power as the most important investment in crypto. In fact, the chief commodity strategist believes that once the market stabilizes, Bitcoin is set to outperform all other crypto assets.

Bloomberg Intelligence Senior Commodity Strategist Mike McGlone. Image: Elevenews.

Moreover, financial experts say that bitcoin cannot be classified as an asset but rather collectible. McGlone stands firmly by his own price prediction that Bitcoin will reach $100,000 by 2025 and attributes its current decline or correction to worsening inflation.

The majority of crypto fund managers surveyed by financial services firm PWC believe that the price of bitcoin will range between $75,000 and $100,000 by the end of the year.

The data in the report comes from a survey of 77 crypto hedge fund managers conducted in April, the PWC said, adding that the total assets under management for the past year were $4 billion.

While McGlone has maintained a bullish stance, other crypto strategists such as Peter Schiff think otherwise. Schiff sees bitcoin’s decline as it is and says the long-awaited bubble burst will make the market bleed.

BTC total market cap at $415 billion on the daily chart | Source: TradingView.com

BTC Trying to Stay Above the $20K Critical Line

Currently, BTC is trading at $21,200 and it is trying to stay above $20,000 and thrive. The leading cryptocurrency company also led all other cryptocurrencies in slashing as much as $360 billion in just one week.

Bitcoin price appears to be on a free-fall path as it approaches the critical $20,000 level. BTC is said to be technically oversold as it recently broke through the $30K support level and is dropping as momentum increases and two things are bound to happen: Either Bitcoin pulls back and heads to the upside – or it heads further lower, or what analysts refer to as a “bottom-accumulation phase”.

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Featured image from The Naked Scientists, chart from TradingView.com



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