Bitcoin drops below $ 58K as Bloomberg considers BTC price of $ 80K in Q2


Bitcoin (BTC) reversed recent gains to lose 1.5% on April 6 as bulls were frustrated with no signs of attacking all-time highs

1 hour candle chart BTC / USD (Bitstamp). Source: TradingView

Bitcoin will ‘likely’ crush $ 60,000 resistance

TBEN Markets Pro and TradingView showed local lows of $ 57,340 hitting Tuesday after another failed attempt to tackle $ 60,000 resistance.

Despite being a matter of thousands of dollars away from all-time highs of $ 61,700, BTC / USD has not been able to drive sellers away for good. While thinning, the last resistance band remained in place.

This 2020-2021 bull market slowdown has alarmed some, but professional analysts remain steadfast in their Optimistic valuations of the largest cryptocurrency.

Among them, Bloomberg Intelligence, which predicted Tuesday that the second quarter would be more likely to generate a further rise to $ 80,000 than a capitulation move to $ 40,000.

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A new report reads: “The adoption of the benchmark crypto as a global reserve asset has crossed the general threshold, as we see, and the market tide is rising. This scenario has turned the tide. focus of our 2021 analysis towards more technical indicators. from a wider range of fundamental and on-chain metrics over the past few years. “

“A more likely 2Q scenario is to break through $ 60,000 resistance and head towards $ 80,000. A backup to $ 40,000 support is less likely, in our opinion.”

Bloomberg’s senior commodities strategist Mike McGlone, who wrote the report, is well known as a Bitcoin bull, and his perspective matches that of various analytical resources who present their own reasons for being confident in the market.

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Continuing, he noted that in terms of reserve assets, Bitcoin is usurping land that was once reserved for gold. Precious metal “will always have a place in jewelry and coin collections,” he argued, “but most indicators point to an acceleration in the pace of Bitcoin replacing metal as a store of value in wallets investors. “

“Bitcoin’s fundamentals and techniques are improving while gold is deteriorating,” the report sums up.

Altcoin wake-up call sees a gain

Meanwhile, altcoins had even more to celebrate than the average Bitcoin investor of the day, as large-cap cryptocurrencies added to strong weekly growth.

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Among them were Ether (ETH), fresh off new all-time highs of around $ 2,150, and XRP, which broke the $ 1 barrier for the first time since 2018 before being corrected.

Binance Coin (BNB), the second largest altcoin by market cap, gained 3.4% to $ 388, sealing weekly gains of over 33%.

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An accompanying chart suggested that smaller altcoins would feel the edge once larger coins outperform. As TBEN reported, altcoins traditionally do better after Bitcoin has spent a reasonable amount of time consolidating after a bull run.

Bitcoin’s market cap dominance stood at 55.1% on the day, its lowest since May 2019.

Cryptocurrency Market Cap Dominance Chart. Source: CoinMarketCap