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During 2020, Bitcoin’s price went from a low of $ 3,800 to $ 14,100, representing over 250 ROIs year to date. As strong as this performance was for the first ever cryptocurrency, according to a Bloomberg Senior Commodity Strategist, Bitcoin could become “parabolic” in 2021 just as it did in 2017 and 2013. Here are the reasons for this prediction, directly from the Analyst of Bloomberg Intelligence.
Bloomberg’s Mike McGlone: ”Bitcoin May Undergo A Parabolic 2021″
A new bull market in the crypto market may be in turmoil and is becoming more obvious by the day. The highest high Bitcoin set on Halloween on the 2019 peak combined with the highest low on Black Thursday confirms that a bullish trend is forming.
Another higher low, followed by another higher high, might be all it takes to send “parabolic” Bitcoin, according to Mike McGlone, Bloomberg Senior Commodity Strategist. Lead analyst at Bloomberg Intelligence points to the annual BTCUSD price chart, with decreasing supply and a moving average of the annualized average price thrown into the mix, as reasons to support the forecast.
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McGlone’s chart highlights what he refers to as “years of growth” after each halving that acts as a catalyst. The halving of the cryptocurrency block reward happens every four years, hence the relationship where new spikes come in at intervals.
#Bitcoin it could experience a parabolic 2021, as it happened in 2013 and 2017, if previous models reappear. The new highs are a next potential iteration and it might just be a matter of time unless something we don’t anticipate will increase the trend of more adoption and demand than a limited supply. pic.twitter.com/w742J7bXfC
– Mike McGlone (@ mikemcglone11) November 4, 2020
That’s why the senior commodity strategist says Crypto Bull Run is here
Bitcoin is the first ever cryptocurrency, designed to share similarities with both a currency and a commodity. It can be used as a store of value and a means of transfer, but due to its poor design, it is deflationary by comparison and highly collectible.
The creator of the coin has tried to make Bitcoin look like gold and has achieved to make it even better in almost every way.
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McGlone as Bloomberg’s Senior Commodity Strategist has spent much of his career analyzing supply versus demand in the commodity market. Few understand the dynamics of Bitcoin’s 21 million BTC cap and the decrease in block reward better than McGlone.
McGlone’s belief that lowering supply versus renewed demand could send cryptocurrency parabolic, coincides with many other highly cited models, such as the stock-to-flow popularized by Plan B.
Other analysts believe that Bitcoin cycles are lengthening and downplay the importance of the unique dynamics of the halving on market cycles and supply and demand.
Just two months from 2021, halving theories will have to prove their worth in BTC.
Featured image from Deposit Photos, Chart from Bloomberg Intelligence
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