Crypto Daily: Bloomberg Intelligence says Bitcoin at $100,000 is a “matter of time”

Aug 09, 2022
12:08
2 min reading

Choise.com team

Bitcoin follows what Senior Commodity Strategist for Bloomberg Intelligence, Mike McGlone, calls an “enduring trajectory”. The benchmark crypto is one of the best-performing assets in history, as the expert said in a recent report, and might be on track to record fresh gains in the second half of 2022.

At the time of writing, BTC seems to be trending upwards on the back of a decrease in inflationary expectations for July’s Consumer Price Index (CPI) print. This metric has been recording multi-decade highs forcing the U.S. Federal Reserve (Fed) to take measures by decreasing its balance sheet and hiking interest rates. Thus, creating a hostile economic environment for risk-on assets, such as Bitcoin and equities.

The cryptocurrency might benefit from deflationary forces, McGlone believes. Bloomberg’s Commodities Index, and the price of key commodities, such as Oil and Copper, are hinting at this trend. In that sense, the experts expect assets with fixed supplies to rally. This could set Gold and Bitcoin to hit $2,000 and $100,000, respectively, in the long term.

Bitcoin long-term holders have shed 222,000 coins off their stack since May

Data released by Glassnode suggests Bitcoin long-term holder behavior has shifted from accumulation to distribution recently. As per a new report fromGlassnode, the BTC long-term holders have been spending up to 47,000 BTC per month in recent days.

The “long-term holders” (LTH) refer to Bitcoin investors that have been holding onto their coins since at least 155 days ago, without selling or moving them. The “LTH net position change” is an indicator that measures the net number of coins that these HODLers have been selling or buying recently.

It remains to be seen what consequences the new shift towards distribution may have for the crypto. The current bullish momentum may not last too long if the selling trend from LTHs continues.

Bitcoin price analysis

Bitcoin price was stable above the $23,000 and $23,200 levels. The price formed a base above the $23,200 level and started afresh increase.

There was a clear move above the $23,500 resistance zone. The bulls were able to push the price above the $24,000 resistance zone and there was a close above the100 hourly simple moving average. There was a spike above the $24,200 level.

A high was formed near $24,285 and the price is now correcting lower. There was a break below the $24,000 level. Bitcoin price dipped below the 23.6% Fib retracement level of the upward move from the $22,845 swing low to $24,285 high.

However, the price remained stable above the $23,600 level. There is also a key bullish trend line forming with support near $23,500 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, an immediate resistance is near the $24,000 level. The next key resistance is near the $24,200 zone. A close above the $24,200 resistance zone could start a steady increase. In the stated case, the price may perhaps rise clear the $25,000 resistance.

Technical indicators

Hourly MACD – The MACD is now gaining pace in the bullish zone

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level

Major Support Levels – $23,600, followed by $23,500

Major Resistance Levels – $24,000, $24,200 and $24,500

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