With the recent drop in the price of Bitcoin, a number of market speculations have emerged. Fans and experts alike have been giving their predictions on what they think will happen in the future. While most have been bearish, Mike McGlone’s forecast is quite bullish. The Bloomberg analyst has sparked hope in the hearts of some with his forecast that $20,000 is the new $5,000 for bitcoin.

Good news for Bitcoin

McGlone took to Twitter to share his forecast on the leading cryptocurrency in the market. Panic had gripped investors as the digital asset had declined to the $20,000 level, tying slightly above it. While many believe this was a sign that a new downtrend was coming, some have said that it may have marked the bottom of the asset.

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In his tweet, the Bloomberg analyst points to the early days of adoption in contrast to the decline in bitcoin supply that may prevail. This argument is by no means new. The limited supply of BTC has long been one of the attractions for investors who believe that, in the end, the scarcity of the cryptocurrency will be what drives its price higher. Mainly, McGlone suggests that BTC is approaching “too cold” levels and as such $20,000 may well be the new $5,000.

What this implies is that the bottom of the current downtrend may be in. Looking at the previous bear market, it is obvious that the bottom was recorded just as the price had dropped below $6,000 in the early days of 2022. If so, then there is no further decline for the digital asset from this point.

BTC resumes downtrend | Source: BTCUSD on TradingView.com

But is the bottom inside?

Just as one historical move can tell a story of bitcoin’s bottom, so do the others. Now, it is known that the last bear market saw the price of bitcoin decline more than 80% from its all-time high. This trend has been closely followed through bear markets. Despite the brutal crash of the last few days, Bitcoin is still less than 70% below its November all-time high. Given this, there may be more declines to come if this trend continues.

Related Reading | Bitcoin Recovers Before Hitting 2017 Peak, Has It Bottomed?

However, there is another trend that lends credence to McGlone’s prediction. This is the fact that no matter the drop, the price of the digital asset has never fallen below the peak of the previous cycle. Since bitcoin’s last peak was just under $20,000, the bottom may be in if this trend holds.

However, one thing to keep in mind is that the current market has deviated from previously established trends. It had started with the multiple bullish rallies of 2021 and has now moved into the bear market of 2022. So perhaps there will be more historical trend breakouts to come.

Cryptoknowmics featured image, chart from TradingView.com

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This post Mike McGlone says that $20,000 is the new $5,000 for Bitcoin, but is he right?

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