The crypto market is still looking bloody today with the most important coins trading in the red. At the moment of writing this article, BTC is trading in the green and the king coin is priced at 19,635.
New Bitcoin analysis is out
Bloomberg’s popular commodities analyst Mike McGlone says that the $20,000 range for Bitcoin may act as the new price floor, similar to $5,000 in years past.
The analyst made sure to explain the fact that the flagship cryptocurrency is now approaching historically “too-cold” price levels, based on a series of moving averages.
“$20,000 Bitcoin may be the new $5,000 – The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in [the first half of 2022].”
During the 2018 bear market, the $5,000 price area served as support for Bitcoin for about a year. Back in 2020, the $5,000 level also acted as support for Bitcoin even though BTC briefly breached the area a couple of times.
As bad as market sentiment appears now, McGlone talked about Bitcoin’s downturn as “typical,” and pointed out how it is occurring alongside surging volatility in other traditional assets.
“Bitcoin Adulting vs. Spiking Stock, Bond, Commodity Volatility – Bitcoin appears to be in the midst of a typical drawdown, notably vs. historically extreme spikes in commodity prices and bond yields, rapidly reverting equities and the most aggressive Fed in about 30 years.”
2018 vs 2022 crypto winter
Crypto is closer to the bottom than other assets, CoinMarketCap’s head of research said not too long ago,
Alice Liu pointed to the fact that Bitcoin has dropped in price 30% in the past week alone — with Terra’s collapse and Celsius Network’s financial woes piling pressure onto the crypto ecosystem of late.
Here’s what she had to say:
“All these events have already allowed it to price in a high degree of negative sentiment within the crypto market.”