Bitcoin (BTC) spectacular surge beyond $50,000 USD this week is expected to continue far into the fourth quarter, as psychological resistance turns to support during the next leg of the bull market.
Senior commodity strategist at Bloomberg, Mike McGlone, released the Crypto Index for October 2021 earlier on Wednesday, which gave a snapshot of where digital assets may go for the remainder of the year. McGlone speculated in the article that Bitcoin’s $50,000 resistance, which has been impregnable since the May crash, was ready to give way to support.
7-Day Bitcoin Price Chart – Source: CoinMarketCap
“Bitcoin‘s $50,000 resistance level, which has been in place since May, seems ripe to become the cryptocurrency’s support value in 4Q,” he said.
“We see the $40,000 level as being equivalent to the cryptocurrency’s $10,000 launchpad in the year 4020.” Parallels may be seen from a distance of roughly 4 times higher. The average price in 2021 is $44,500, and adoption and demand are increasing despite dwindling availability.”
Yesterday on Wednesday, the Bitcoin price soared to multi-month highs as a combination of technical, fundamental, and sentiment reasons propelled the cryptocurrency to new highs.
For example, Bitcoin’s 9% increase on Wednesday occurred while the Dow Jones fell almost 200 points and the US dollar climbed 0.4 percent versus a basket of rival currencies.
According to McGlone’s study, Bitcoin continues to trade at a discount to established stock market indices such as the Nasdaq. “Rising stocks could keep high-beta Bitcoin afloat, but if the stock market falls, the additional stimulus will strengthen the digital reserve asset’s roots,” he said.
In the midst of the growing use of decentralized exchanges (DeFi) and nonfungible currencies, the study praised Ethereum (ETH) (NFTs). McGlone has set a $5,000 goal for the Ether price, claiming that the path of least resistance is upward.