In the monthly cryptocurrency newsletter Bloomberg Crypto Outlook for July 2021, Mike McGlone stated that the price of the main cryptocurrency could rise a hundred times higher than the price of an ounce of gold. The senior commodity strategist at Bloomberg Intelligence explains his forecast with technical analysis.
"Bitcoin may be more than a digital version of gold. A potential path for the Bitcoin price is to stabilize around 100x an ounce of gold and for volatility to resume its downward trajectory, if past patterns repeat."
The price of one ounce of gold is now worth just over $1,800.
Bloomberg Crypto Outlook also noted that the second half of 2021 will be different for the cryptocurrency market compared to the first.
"The crypto market is likely entering a more adult stage in 2H, and we see Bitcoin regaining luster."
The report did not ignore the second cryptocurrency. It noted that the growing adoption of Ethereum is an optimistic sign that the second-largest crypto asset by market capitalization may follow the same trajectory as Bitcoin in 2017.
"The go-to platform for cryptos and decentralized finance – Ethereum – appears at a discount within a bull market and could consolidate for a while at $2,000-$4,000. Looking like Bitcoin in 2017, Ethereum has flushed out excessive speculation, while increases in addresses used reflect the accelerating digitalization of money.
Akin to Ethereum at the start of this year, the [sic] Bitcoin began 2017 around $1,000 and peaked just below $20,000. Ethereum could stay within the $2,000- $4,000 range since May roughly until October and maintain a 2017 Bitcoin-like flight plan," as stated in the Bloomberg Crypto Outlook bulletin.
In the perspective of six months, we can agree with this forecast. But the question is still open as to whether growth will begin after the current consolidation in the range of 31082.82 - 41980.24 or after a stronger decline.
Other data suggests that the price of BTC/USD may not fall below $30,000 during the current correction.
So, according to CryptoQuant, a popular online data analysis tool for Bitcoin and other cryptocurrencies, the number of BTC outflow transactions from spot exchanges has reached a maximum in a year. This outflow is often seen as a very bullish sign for the price.
Meanwhile, Bitcoin's price falls on Thursday, en route to the red dotted support at 31,082.82. You should be careful here since a good buy entry point can be formed in the event of a rebound or a false breakout of this border.
