Senior commodities expert at Bloomberg Intelligence indicated crucial level of support and resistance for Bitcoin in early 2022
Mike McGlone, Bloomberg Intelligence Commodity Strategist, has taken to Twitter to indicate four causes behind the optimism of Bitcoiners.
Growing adoption versus declining supply
Mr. McGlone shared three charts: the dynamics of the average annual Bitcoin price (BTC), the Bitcoin liquid index (first quarter period), and the ratio of the 260-day volatility of the Bitcoin price to the same indicator for the S&P index.
He added that Bitcoin (BTC) is still experiencing increasing adoption despite being in the nascent stage as both a technology and a digital asset.
Additionally, he indicated that the drop in supply was a net positive factor for the outlook for Bitcoin (BTC). Bitcoin emissions are reduced by 50% every two years.
Finally, according to Mr. McGlone, Bitcoin (BTC) is showing obvious signs of maturation. More or less, it is demonstrated by a declining BTC/S&P500 volatility ratio.
Crucial year for the orange coin
As such, Bitcoin (BTC) is approaching 2022 in a clear bull market. The Bloomberg strategist has indicated two levels to watch: support at $ 50,000 and resistance at $ 100,000.
As covered by U.Today previously, the analyst is also optimistic about the mid-term prospects of Ethereum, the second cryptocurrency.
Mr McGlone attributed the possible rise in Ethereum (ETH) to $ 5,000 to increasing demand, declining supply and Ethereum’s role in the digital transformation of the financial segment.
