Next Bitcoin Bull Run to Resume Only After Price Shoots $30k

• Bloomberg’s Mike McGlone suggests that Bitcoin at $30,000 could mirror the significance of the $12,000 level in 2020.
• After Tuesday’s bounce, the BTC price has retraced and is currently facing rejection at its 200-DMA of $27,500.

Following the court ruling that registered Grayscale’s victory over the US SEC, the Bitcoin price bounced by over 8% shooting past $27,500 levels. This was a much-needed recovery to the otherwise struggling BTC price, which has been consolidating strongly around $26,000 for a while.

In a recent Twitter post, Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, stated, “Bitcoin at $30,000 Could Become the New $12,000.”

McGlone suggested that the $30,000 mark holds significant importance for Bitcoin’s trajectory. He contended that a resurgence above $30,000 might indicate a shift in the downtrend that was initiated in 2020. Remarkably, McGlone envisions a subsequent upward trend similar to the scenario witnessed when Bitcoin was trading at $12,000.

“Sustaining back above $30,000 would indicate a reversal upward akin to a similar pattern around $12,000 in 2H20,” he added.

Bitcoin $30,000 May Be New $12,000, With Fed-Tightening Overhang – The inevitable approval of #Bitcoin ETFs in the US is moving closer, but the elephant in the room for all risk assets remains — the #Fed is still tightening despite the tilt toward economic contraction. pic.twitter.com/3i7MwxiZ3i

— Mike McGlone (@mikemcglone11) August 30, 2023

Significantly, $12,000 marked one of Bitcoin’s lowest levels in 2020, preceding a consistent and positive climb to its all-time high. McGlone’s tweet was accompanied by a chart illustrating this path.

Although the Bloomberg analyst recognized the potential for a similar scenario, he highlighted a notable distinction compared to 2020. He specifically underscored the presence of less favorable liquidity stemming from financial institutions this time around.

Bitcoin Price Fails to Hold Above 200-DMA

After Tuesday’s price jump, Bitcoin is seeing a major retracement moving back to the $27,100 level. In the daily chart, the price has displayed bullish momentum following its support bounce at the $25,000 threshold. The 200-day moving average, situated near $27,500, is presently undergoing testing.

A successful breakthrough beyond this level could trigger additional upward momentum, potentially leading to a retest of the $30,000 mark. However, should the 200-day moving average reject the price downward, it could pave the way for further bearish movement, potentially propelling the price back toward the $25,000 level in the upcoming weeks.

While the Bitcoin price jumped above the $27,500 level, its relative strength index (RSI) also surged suggesting an overbought zone. This shows that a bearish rejection is more likely going ahead with the BTC price expected to go to $25,000.

Bitcoin On-Chain Data

On the other hand, on-chain developments show some optimism. The trading volumes for Bitcoin have stayed more or less intact after Tuesday’s price pump. “Bitcoin in particular, is getting a big resurgence in trader interest. If $BTC stays in the $27K-$28K range, things should settle. Higher or lower, volatility is more likely,” reports Santiment. 

Courtesy: Santiment

Another positive development with Bitcoin is that the BTC exchange reserves have continued to drop over the past few weeks, during the price consolidation. The drop in the exchange supply means greater demand that could drive the BTC price higher.

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