A Bloomberg Senior Strategist Mike McGlone, believes that Bitcoin will turn parabolic in 2021 as we are reading more in the latest bitcoin news today.
During 2020, Bitcoin’s price increased from a low of $3800 to $14,100 which represents over a 250 ROI year-to-date. As strong as this performance has been for the number one cryptocurrency, according to the Bloomberg Senior strategist, Bitcoin could go parabolic in 2021 just like it did back in 2017 and 2013. Here are a few reasons for this prediction.
#Bitcoin may undergo a parabolic 2021, as it did in 2013 and 2017, if previous patterns play out again. New highs are a next potential iteration and may be only a matter of time unless something we don't foresee trips up the trend of greater adoption and demand vs. limited supply pic.twitter.com/w742J7bXfC
— Mike McGlone (@mikemcglone11) November 4, 2020
The new crypto market bull run could be preparing and it is becoming even more obvious every day. The high level that BTC set on Halloween over the 2019 peak combined with the Black Thursday low, confirms that the trend is forming. Another higher low followed by another higher high which could be all it takes to send Bitcoin parabolic according to McGlone. The top Bloomberg analyst pointed out to the BTC/USD price chart with the diminishing supply and annualized average price moving average that was thrown into the Mix as the reasons backing up the prediction. McGlone’s chart outlined what he refers to as strong up years after each halving acting as a strong catalyst.
The cryptocurrency’s block reward halving usually takes place every four years so the relationship with the new peaks arrives in intervals. Bitcoin is the first cryptocurrency that is designed to share similarities with both a currency and a commodity. It can be used as a store of value and as a means of transfer but because of its scarce design, it is deflationary by comparison and highly collectible. The creator of the coin wanted to make Bitcoin similar to gold and to achieve making it better in almost every way. McGlone spent a huge part of his career analyzing supply versus demand in the commodities market. only a few understand this dynamic of Bitcoin’s hard capped 21 million coins and the diminishing block reward better than the analyst does himself.
Mike McGlone’s belief that the lowering supply versus renewed demand could send the asset parabolic coincides with a few other highly cited models like the stock to flow popularized by Plan B. other analysts believe BTC cycles are becoming longer and downplay the importance of the halving unique dynamics on market cycles and supply and demand.
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