Bitcoin’s $50,000 resistance will become support in the fourth quarter-Bloomberg Commodity Strategist

Bitcoin (BitcoinAccording to Bloomberg senior commodity strategist Mike McGlone (Mike McGlone), this week’s surge above $50,000 may continue into the fourth quarter, as psychological resistance turns into support in the next phase of the bull market.

Tuesday, Magron spread The October 2021 edition of the Bloomberg Galaxy Encryption Index outlines the development direction of digital assets for the rest of the year. In the report, McGonlong speculated that Bitcoin’s $50,000 resistance level-a level that has proven unbreakable since the May sell-off-is about to flip the support level.

“Bitcoin’s resistance point of $50,000 since May seems to have matured and could become the supporting value of the cryptocurrency in the fourth quarter,” he wrote, adding:

“We think that the $40,000 mark is similar to the $10,000 launch pad for cryptocurrency in the fourth quarter of 20. The parallel line can be seen from about 4 times the height. The average price in 2021 is $44,500, and the adoption rate and demand are rising , While the supply is decreasing.”

related: Bitcoin beats stocks and commodities to become the best performing asset in 2021

The price of BTC soared to $55,000 on Wednesday as the confluence of technical, fundamental and emotional factors pushed the cryptocurrency to a multi-month high. As Cointelegraph reported, Bitcoin is increasingly decoupled from the broader macro environment. Case: BTC rose 9% on Wednesday The Dow Jones Index plummeted by more than 200 points, and the U.S. dollar rose 0.4% against a basket of competing currencies.

The Magron report shows that Bitcoin is still at a discount compared to traditional stock market indexes such as the Nasdaq. He explained: “The rise in the stock market should maintain the high beta of Bitcoin, but if the stock market falls, more stimulus measures will consolidate the foundation of digital reserve assets.”

The report also expressed a positive view on Ether (Ethereum) With the widespread adoption of DeFi, decentralized exchanges and non-fungible tokens. Regarding the price of Ether, Magron set a goal of $5,000, and believes that the path of least resistance is higher.