Bitcoin’s $ 50,000 resistance to turn fourth quarter support – Bloomberg commodities strategist

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Bitcoin’s (BTC) meteoric rise above $ 50,000 this week is expected to continue through much of the fourth quarter, as psychological resistance switches to support during the next stage of the bull market, according to the strategist Bloomberg’s chief commodity officer, Mike McGlone.

On Tuesday, McGlone released the October 2021 edition of the Bloomberg Galaxy Crypto Index, which provided a snapshot of where digital assets could go for the rest of the year. In the report, McGlone speculated that Bitcoin’s $ 50,000 resistance – a level that has proven impenetrable since the May dump – was about to reverse support.

“Bitcoin’s $ 50,000 resistance point since May seems ripe to become the crypto’s support value at 4T,” he wrote, adding:

“We see the $ 40,000 mark as similar to the 4Q20 crypto’s $ 10,000 launch pad. The parallels are visible about 4 times higher. The 2021 average price is $ 44,500, and adoption and demand are up compared to declining supply. “

Related: Bitcoin beats stocks and commodities to become top performing asset of 2021

The price of BTC jumped to $ 55,000 on Wednesday, as a confluence of technical, fundamental and sentimental factors pushed the cryptocurrency to multi-month highs. As Cointelegraph has pointed out, Bitcoin is increasingly decoupling from the larger macro environment. Case in point: BTC’s 9% rise on Wednesday came as the Dow Jones plunged more than 200 points and the US dollar rose 0.4% against a basket of competing currencies.

McGlone’s report indicated that Bitcoin remains at a discount to traditional stock indexes like the Nasdaq. “The rise in stocks should keep bitcoin at a high beta, but if the stock market falls, more stimulus will solidify the foundation for digital reserve assets,” he explained.

The report also had some positive things to say about Ether (ETH) amid the widespread adoption of DeFi, decentralized exchanges and non-fungible tokens. Regarding the price of ether, McGlone set a target of $ 5,000, arguing that the path of least resistance is higher.