Senior commodities expert Mike McGlone showed critical support and resistance for Bitcoin in early 2022. Strategist Mike McGlone took to Twitter to outline four reasons behind Bitcoiners’ optimism. Mike McGlone is an analyst famous for having hit $10,000, $12,000, and $50,000 in BTC. Cryptocoin. com we are looking at the details.
Saying that increasing adoption and decreasing supply are important, McGlone shared three charts: the dynamics of the average annual price of Bitcoin (BTC), the Bitcoin Liquid Index (1Q timeframe) and the ratio between the 260-day volatility of the Bitcoin price and the same indicator for the S&P index.
He stated that although Bitcoin (BTC) is still in the development phase as both a technology and a digital asset, it is still increasingly adopted. He also stated that dwindling supply is a net positive factor for BTC prospects. BTC emissions are reduced by 50% every two years. Finally, according to McGlone, Bitcoin (BTC) is showing obvious signs of maturation. More or less, this is illustrated by a decreasing BTC/S&P500 volatility rate. As such, BTC is approaching 2022 in a clear bull market. The Bloomberg strategist outlined two levels to watch: $50,000 support and $100,000 resistance. The analyst is also optimistic about the medium-term prospects of Ethereum, the second cryptocurrency. McGlone attributed the possible Ethereum (ETH) increase to increasing demand, decreasing supply and Ethereum’s role in the digital transformation of the finance segment.