By
Steve Muchoki
May 6th, 2024
Bloomberg Intelligence’s senior commodity strategist shares the comparison between Bitcoin and Crude oil with regards to their volatility. While he expects BTC to surge further, the strategist thinks crude price can correct based on recent volatility.
Bloomberg Intelligence’s senior commodity strategist Mike McGlone is pretty much confident that Bitcoin (BTC) will resume its bull run and is heading to $100K. McGlone’s prediction comes based on the rapidly advancing technology and deflation for Bitcoin. Moreover, McGlone makes this prediction based on an interesting comparison between Bitcoin (BTC) and Crude oil. The charts presented by the economist compare Bitcoin futures contracts against Brent crude oil. Besides, he is also confident that in the second half of 2021, Bitcoin will resume its northward trajectory.
While McGlone expects Bitcoin to surge to $100K, he expects oil price to correct to $50. Analysts are expecting that all the infighting going on between the OPEC+ countries will reduce soo. Stephen Schork, a principal advisor at energy analysis company The Schork Group told CNBC that a breakthrough will arrive soon. “I think it’s highly likely [that] it’s going to resolve itself,” he added.
What Gets #Bitcoin Near $100K, #CrudeOil $50 – Enduring Trends: Bitcoin is poised to resume its bull-market and crude oil its bear trend in 2H, with profound macroeconomic implications, in our view. The benchmark digital asset represents rapidly advancing technology and deflation pic.twitter.com/ny8LMq80Yx
— Mike McGlone (@mikemcglone11) July 8, 2021
Interestingly, McGlone’s tweet arrived just hours before the BTC price crash on Thursday, July 8. The BTC price crashed all the way to $32,000 on Thursday.
Analysts Views on the Recent Bitcoin Correction
As Bitcoin and the broader crypto market corrected, analysts weighed their opinions on the matter. Based on the Fibonacci retracement technical analysis, Craig Johnson, chief market technician at Piper Sandler spotted key support and resistance levels. Speaking to CNBC, he said:
“We broke out in January. A few months ago, we made this peak. I actually would go back and put the retracement levels on top of bitcoin, and when you see that, you can see that around 33,000 to 34,000 is a very important retracement level”.
Johnson believes that based on the historical trends, Bitcoin is unlikely to correct further. However, he adds that there could be a prolonged period of consolidation. Johnson said:
“You’ve already seen bitcoin correct about 45%. When you go back to the last two prior cycles, those crypto cycles lasted about 1,000 days. You’ve got to be prepared to batten down the hatches and kind of wait for this to consolidate for quite some time longer before you start the next big major leg higher.”
Blue Line Capital President Bill Baruch also gave his views and said he’s waiting for the next big opportunity to add more BTC. Baruch said: “Give me $25,000 on bitcoin, and I’d be buying more. I’ve been in the space since 2017. There’s times where I’m in it, there’s times when I’m not, I totally exited through early this year”.