Bloomberg Senior Analyst Mike McGlone said Bitcoin is currently trading at a massive discount and could become a global digital collateral.
According Forbes, McGlone relied primarily on technical analysis of the 100-week moving average. In July, Bitcoin hit its lowest price ever against the 100-week moving average.
It’s a sign it’s trading at an “extreme discount in a sustainable bull market,” McGlone said.
The senior commodities analyst also discussed the Federal Reserve’s interest rate hike in the face of current inflation and what that could mean for Bitcoin.
He pointed out that cryptocurrencies have benefited from the low interest rate levels of 2021, and it is not surprising that they are also affected by the rise in rates.
But he thinks the performance of Bitcoin and Ethereum could soon defy rate hikes and rise despite it, as several indicators point to the possibility of a bull run.
“Bitcoin is poised to become a global digital collateral in a world moving in that direction, and Ethereum is a key driver of the digital revolution, as evidenced by the creation of the most widely traded cryptos – dollar tokens. “, did he declare.
Bitcoin is in a buy zone
Additionally, he explained that the Multiple Puell currently means buy. Puell Multiple estimates the level of BTC selling pressure from miners by calculating the daily issue value of Bitcoin in USD by the 365-day moving average of the daily issue value.
It is currently below 0.5, which places it in the green zone and represents a strong buy signal. So, all of these metrics indicate that BTC is on the verge of a breakout.
Meanwhile, other stakeholders also share the same view. Budd White, chief product officer of crypto software firm Tacen, believes that BTC is “incredibly undersold but also in a major accumulation zone.”
He added that Bitcoin has shown resilience and set a floor at $18,000 even though it is trading higher than that. This could be because markets are pricing in any further hikes from the Feds.
The cryptocurrency’s performance has already boosted investor sentiment. According to the Crypto Fear & Greed Index, the index is currently at 31, which represents fear. That’s a far cry from June 19, when it was 6 a.m. – extreme fear.
Bitcoin prices have been stuck in the lower $20,000 range since June.
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