Bitcoin (BTC) has risen to hardly ever seen value highs, presently stalling between $17,000 and $18,500 earlier than deciding on its subsequent transfer. Gold not too long ago broke all-time U.S.-dollar value highs, surpassing $2,000 per ounce earlier than pulling again and consolidating in value. Bloomberg Intelligence strategist Mike McGlone thinks the identical may occur with BTC.

“Quick time period, $20,000 is fairly good resistance,” he said in a Bloomberg interview on Wednesday.

“I’m afraid it’s in all probability going to do what gold did. It acquired to $2,000, after which that’s been consolidating in a bull market since.”

Bitcoin rose to only shy of $18,500 on Tuesday earlier than falling near $17,200 shortly after, based mostly on TradingView.com data. Since then, the asset has traded sideways, consolidating between these two ranges. On a longer-term scale, McGlone expects additional bullishness for Bitcoin within the coming years. He defined:

“The important thing factor about Bitcoin this yr could be very easy — it simply added a one to the entrance of the quantity. Bear in mind, it was round $7,000 on the finish of final yr. What I’m fearful about — in case you have a look at the previous efficiency, which is probably indicative of the long run, subsequent yr or two may add a zero to the again of the quantity.”

Along with his reference to $7,000 close to the tip of 2019, Bitcoin added a one to that determine, making it $17,000. Including a zero to the again of $17,000 offers a future projection of $170,000. Bitcoin had already breached $18,000 throughout McGlone’s interview, nonetheless, so including a zero may arguably imply a future value of $180,000.

McGlone touched on a variety of different vital factors through the temporary section, together with a reference to Bitcoin’s value swings. “Bitcoin is changing into a digital model of gold,” he defined. “One key level that’s occurring this yr is Bitcoin volatility has been declining,” he stated. “In actual fact, it’s the bottom ever versus gold.”

The strategist additionally defined low Bitcoin volatility in opposition to the Nasdaq, a standard mainstream market barometer. “Each different danger asset on the planet, volatility has been rising, Bitcoin has been declining.”

McGlone additionally talked about “institutional FOMO” on Bitcoin in keeping with cash printing. This yr has seen a variety of mainstream monetary gamers purchase stacks of Bitcoin, equivalent to MicroStrategy and Jack Dorsey’s Sq..