A new report indicates that Bitcoin's underlying and technical values are improving despite the recent lackluster price movement.
- According to Bloomberg, Bitcoin will replace gold as a global digital reserve asset.
- Although the digital asset is going through a consolidation period, the company believes there is a greater likelihood that it will progress further.
- The more conservative target mentioned in the report puts Bitcoin at $ 80,000, while the most bullish see it as high as $ 400,000.
The mainstream Bitcoin adoption has accelerated
Bloomberg has released a new version of its monthly report on the outlook for cryptocurrency, titled "The Rising Tide of Bitcoin Adoption". The financial media giant evaluates the various factors that contribute to the increase in demand for BTC and provides forecasts to see where the leading cryptocurrency is headed next.
It is worth noting that the study is hugely bullish, citing a paradigm shift in favor of the leading cryptocurrency to replace gold as a "global digital reserve asset."
According to Bloomberg, Bitcoin has built a price floor at $ 50,000 while the top resistance at around $ 60,000 weakens over time. The company expects prices to clear this hurdle and advance higher over the next few months after the ongoing consolidation period.
But in the event of a sell-off, the 20-week moving average at $ 40K is seen as the most "downside risk".
The most likely scenario for the second quarter is to breach the $ 60k resistance and head towards $ 80k. "Backups are about $ 40,000 less likely, in our opinion," Bloomberg said.
One of the main factors mentioned in the report that supports the bullish narrative was Tesla's bold move to allocate some of its fortune in Bitcoin.
Bloomberg cites such a development as a "tipping point" that may encourage other companies to diversify into digital assets. Now, there is a greater likelihood that BTC will move to traditional investment portfolios due to the "risk of losing Bitcoin's potential to become the global benchmark digital asset."
In essence, BTC's fundamental and technical fundamentals are improving, making it a strong case for replacing gold as a store of value in investor portfolios. These market conditions indicate that the major cryptocurrency will reach "price caps" like those that occurred during the bulls in 2013 and 2017.
Under these conditions, Bloomberg believes Bitcoin will rise to $ 400,000.
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