Following last year’s market turmoil, especially the May 2022 Terra-LUNA debacle, the crypto market has struggled to re-attain its 2021 levels. The leading digital asset, BTC, has failed to trade at $35K since then.
However, things are moving up for the flagship crypto asset as on-chain data for June 24 showed that it traded at the $31,400 price level for the first time in 12 months, leading market analysts to predict an upcoming rally for digital gold.
Will Bitcoin Hit $40,000?
According to Bloomberg Intelligence’s Senior Strategist, Mike McGlone, Bitcoin is headed for a rough patch should the token’s price hit the $40,000 mark. In a recent Twitter post, McGlone shared insightful findings of a comprehensive outlook for the crypto market.
In the report, McGlone presented a compelling argument highlighting the potential challenges that Bitcoin may encounter despite the imminent launch of several spot Bitcoin exchange-traded funds (ETFs) by prominent players in the financial sector. According to McGlone, these developments alone will not shield Bitcoin from the gloomy shadows cast by an impending US recession, a potential equity bear market, and the increasingly hawkish stances adopted by central banks globally.
Additionally, his analysis delves into the complex dynamics of the global economic landscape, exploring the interplay between traditional financial markets and the vibrant crypto industry. While the launch of Bitcoin ETFs has garnered significant attention and optimism within the crypto community, McGlone emphasized the importance of considering broader macroeconomic factors before being too excited.
According to him, the near-term forecast for Bitcoin appears positive. However, among this positive sentiment, a key pivot indicator has remained near the $30,000 mark since 2021.
The analyst added that this pivotal level has proven to be a significant barrier toward further price appreciation for BTC. Moreover, McGlone said that the backdrop of an unprecedented spike in the money supply further heightens this persistent hurdle.
On Bitcoin ETF Approval
Commenting on the number of applications filed by asset management firms to offer Bitcoin ETF, the Bloomberg expert believes it is only a matter of time before the SEC gives in to the increased demands. He noted that BlackRock’s decision to apply for ETF approval had accelerated the demand for the fund’s establishment, although a formal approval might not materialize this year.
Furthermore, McGlone opines that the persistent interest rate increases by the Federal Reserve, coupled with a lack of US dollar liquidity and the Nasdaq 100 stock index reaching its peak, pose significant obstacles to any imminent surge in Bitcoin’s price. Similarly, the founder of Cubic Analytics, Caleb Franzen, echoed McGlone’s sentiment by stating that the primary resistance zone for BTC is still between $31,000 to $35,000.
Meanwhile, reports indicate that the Bitcoin CME gap is closed between $34,450 and $35,170. This development has attracted the attention of market observers, who eagerly await this event and its potential impact on the crypto market.
Furthermore, the upcoming expiration of over 145,000 Bitcoin options, boasting an outstanding notional value of $4.5 billion, adds another layer of intrigue to the unfolding narrative surrounding the price movement of the digital asset.
Observers cite the prevailing near-term technical advantage as a key factor underpinning their bullish stance, reassuring investors and enthusiasts. As the market gears up for these significant events, the expectations surrounding Bitcoin’s short-term price movement continue to grow.