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Bitcoin set a new all-time high in March when it traded above $61,000. But BTC’s price later retreated and has struggled to move past $60,000 since then.
However, some investor professional analysts remain optimistic of Bitcoin’s price trajectory, according to Cointelegraph. For instance, Bloomberg Intelligence crypto analysts believe that BTC is more likely to surge to $80,000 in the second quarter than plunge to $40,000.
With BTC’s increasing adoption, the crypto is now slowly replacing gold as a reserve asset. “Visa, Goldman Sachs, and Morgan Stanley have notably embraced the digitalization of money, buoying the process of Bitcoin replacing gold as the global digital-reserve asset,” Bloomberg Intelligence wrote on a report on its Crypto Outlook report released on Tuesday
Bloomberg Intelligence said that baseline support for Bitcoin has risen to $50,000 “with $40,000 representing more extreme downside risk.” The crypto’s resistance level is around $60,000.
While BTC appears to be stuck near $58,000, Bloomberg believes that BTC is just resting before the next phase of its rally. “Its 20-week moving average has advanced above $40,000 for the first time,” the report said. “Juxtaposed is the downward slope of the broader market, as measured by the Bloomberg Galaxy Crypto Index vs. the Bitcoin price.”
The analysts said that BTC’s price is more likely to climb higher in the second quarter for a number of reasons. One of these is that the crypto’s adoption as a “global reserve asset has crossed the mainstream threshold.” The low-yield environment in traditional asset classes such as bonds is also forcing money managers to “allocate at least a small portion of funds” into Bitcoin.
“This scenario has switched the focal point of our 2021 analysis toward more technical indicators from a wider range of fundamental and on-chain metrics in the past few years,” the report added. “A more likely 2Q scenario is to breach $60,000 resistance and head toward $80,000. A backup toward $40,000 support is less likely, in our view.”
