Bloomberg Analyst Suggests Bitcoin Bull Market Could Commence at $30k, Similar to How It Started at $12k in 2020

In a recent development, three judges from the District of Columbia Court of Appeals in Washington decreed that the Securities and Exchange Commission (SEC) did not sufficiently outline its reasoning behind dismissing Grayscales Bitcoin ETF proposal.

The judges emphasized that the SEC needs to reassess its conclusion due to the lack of comprehensive clarification in its initial ruling. Following this ruling, Bitcoin surged by more than 5% in the past 24 hours.

With its current value resting at $27,386, an analyst at Bloomberg has suggested that the possibility of a bullish market is higher as Bitcoin approaches the $30,000 mark.

Post $30k Bitcoin price level could start the next bull run

In his recent Twitter post, Mike McGlone, the Senior Macro Strategist at Bloomberg Intelligence, stated, Bitcoin at $30,000 could have the same significance as $12,000."

Bitcoin $30,000 May Be New $12,000, With Fed-Tightening Overhang - The inevitable approval of #Bitcoin ETFs in the US is moving closer, but the elephant in the room for all risk assets remains - the #Fed is still tightening despite the tilt toward economic contraction. pic.twitter.com/3i7MwxiZ3i

- Mike McGlone (@mikemcglone11) August 30, 2023

McGlone implied that the $30,000 mark is important for Bitcoin's price. He reasoned that if Bitcoin rises beyond $30,000, it might mean that the asset has reversed the downward trend it recorded since 2020.Notably, McGlone envisions a comparable upward trend to the one witnessed when BTC was valued at $12,000.

Accompanying his tweet, the analyst conveyed in an image: Maintaining a position above $30,000 would signify an upward reversal comparable to a similar pattern observed around the $12,000 mark in the second half of 2020."

Importantly, it's worth highlighting that 2020 $12,000 marked one of the lowest values for Bitcoin before it embarked on a consistent upward trajectory that eventually led to its all-time peak. McGlone's tweet was complemented by a chart illustrating this path.

While the Bloomberg analyst acknowledged the potential for a similar scenario, he drew attention to a significant distinction in the current situation compared to 2020.He emphasized the unfavorable liquidity stemming from financial institutions as a key factor in the present context.

Possible setbacks that could prevent the BTC rally

McGlone argued that banking regulatory bodies are adopting more stringent measures, amplifying the uncertainties tied to reinvesting in the stock market.He posits that this scenario might create obstacles for Bitcoin's efforts to sustain an upward progression.

Further, the analyst recognized the potential for approving a spot Bitcoin exchange-traded fund (ETF).While this occurrence is anticipated to influence the Bitcoin price, McGlone contends that the obstacle remains the US Federal Reserve.

He asserts that despite indications of a contracting economy, the Federal Reserve continues to adopt stringent measures.

Furthermore, the analyst drew a comparison between the performance of BTC and the S&P 500. He says that Bitcoin has exhibited a 10% decline in the third quarter of the year, in contrast to the 1% growth in the S&P 500.

McGlone proposes that Bitcoin might anticipate a downturn in equities, a phenomenon typically associated with an impending recession.

Also, other market observers and analysts believe that if Bitcoin consolidates between the $27,000 -$28,000 price level, this could signal price stability for a while.

However, failure to maintain this level might propel the price of BTC to a major decline.

The post Bloomberg Analyst Suggests Bitcoin Bull Market Could Commence at $30k, Similar to How It Started at $12k in 2020 appeared first on The Tech Report.