Bloomberg senior analyst Mike McGlone said bitcoin is currently trading at such low prices that it could become a global digital collateral.
according to Forbes, McGlone relies primarily on technical analysis of the 100-week moving average. In July, Bitcoin price hit a low of the 100-week moving average.
That suggests it’s “trading at extremely low prices in an ongoing bull market,” McGlone said.
The senior commodities analyst also spoke about the Fed raising interest rates in the face of current inflation and what that could mean for Bitcoin.
He noted that cryptocurrencies benefit from low interest rate levels in 2021, and it is not surprising that they are also affected by rate hikes.
But he believes that the performance of bitcoin and ethereum may soon defy interest rate hikes and rise, as several indicators point to the possibility of a bull market.
“In such a world, Bitcoin is on its way to becoming a global digital collateral, and Ethereum is the main driver of the digital revolution, which can be achieved by enabling the most widely traded cryptocurrency, the U.S. dollar token. be proven,” he said.
Bitcoin is in a buy zone
Furthermore, he explained, Puerdo Indicates a buy now. The Puell Multiple estimates the level of BTC selling pressure by miners by calculating the daily issuance value of Bitcoin (in USD) divided by the 365-day moving average of the daily issuance value.
It is currently below 0.5, in the green zone, representing a strong buy signal. Hence, all of these indicators point to BTC on the verge of a breakout.
Meanwhile, other stakeholders hold the same view. Budd White, chief product officer at encryption software firm Tacen, believes that BTC is “significantly undervalued, but also in a major accumulation zone.”
He added that Bitcoin has shown its resilience and has bottomed out at $18,000, although it is trading above that level. That could be because the market is pricing in any additional rate hikes from the Fed.
The performance of cryptocurrencies has improved investor sentiment. According to the Crypto Fear and Greed Index, the index is currently at 31, which represents fear. It’s a far cry from June 19th, when it was 6 o’clock – extreme fear.
Bitcoin prices have been stuck below $20,000 since June.
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