Bitcoin price rose by 6% because Bloomberg analysts believe that the next $40,000 will exceed $20,000

Bitcoin (Bitcoin) Is “more likely” to reach $40,000 than $20,000, Bloomberg believes, because the largest cryptocurrency is up 6% a day.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

“Persistent Bull Market Bottom” in McGlong’s Eyes

Data from Cointelegraph Markets Pro with Transaction view In the analyst’s new bullish forecast, BTC/USD returns to the 35,000 USD mark.

In a tweet on Wednesday, Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, believes that Bitcoin will return to $40,000 faster than the all-time high of $20,000 in 2017.

“Bitcoin surrenders? $40,000 seems more likely than $20,000,” he wrote.

“Bitcoin’s plunge on June 8 and its return to the low-end support level of around $30,000 have many characteristics of extreme bearish sentiment, which is typical of a longer-lasting bull market bottom.”

McGonlong emphasized that Bitcoin has reached its 20-week moving average because it provided a bottom signal similar to that in March 2020—the height of the market crash caused by the coronavirus.

Moving averages continue to play a role Important section Worried about where the BTC price will go next.

BTC/USD and 20-week moving average chart.Source: Mike McGlong/Twitter

Bitcoin is no longer a “speculative cryptocurrency”

Due to news that El Salvador will become the first country in history to implement Bitcoin, Bitcoin has been rising legal tender.

This move is a major contrast to the trigger points of a large number of “bad news” from various sources in recent days and weeks, including former US President Donald Trump. Make a call This is a “scam”.

As Cointelegraph Report, Many market participants still tend to return to bearish price action, such as further retesting $30,000 or even lower.

For Magron, however, the Salvadorian statement that first surfaced at the Miami meeting last week marked a clear turning point.

“Woodstock-like Bitcoin 2021 Miami supports mainstream adoption views: The Bitcoin 2021 conference from June 3 to 5 further confirmed our view that Bitcoin has transformed into a global digital reserve asset and is no longer speculative. Cryptocurrency,” he Tweet Tuesday.

At the time of writing, BTC/USD is still hovering around 35,000 USD, but so far it has not turned that level into a reliable support.