Bloomberg remains bullish on Bitcoin (BTC), as long as it stays above a key resistance level.
Bitcoin Bollinger Bands. Source: Bloomberg
Bloomberg analyst Mike McGlone’s latest report claims that Bitcoin is consolidating. He speculates that due to declining volatility, the price of Bitcoin Bollinger Bands is at its lowest point.
$ 6,500 – $ 13,000 a critical range
In his opinion, Bitcoin is preparing to break out of the resistance level above $ 13,000. At the same time, believes that it is somewhat critical that the price does not drop below $ 6,500:
“Our chart shows the 260-day moving average with an upward slope in cryptocurrencies and the bands that marked approximately the maximum of 2019 and the minimum of 2020 as a guide. By this measure, when Bitcoin escapes from its cage, around $ 13,000 would be a good target for initial resistance. Staying below the lower band at about $ 6,500 would jeopardize the uptrend. ”
Closer and closer to gold
McGlone notes that Bitcoin’s volatility relative to the same index for gold is the lowest, since the record bullish trend of 2017, and is well below average:
“Its 260-day volatility is approximately 4.4 times higher in the same index for gold, it is the lowest since April 2017. The average is around 6.4 and the peak was 12.2 in 2011.”
Bloomberg recently predicted that Bitcoin could regain its all-time high of $ 20,000, even hitting a new high of $ 28,000.
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