E-Money Chat

View Original

Free fall: Bitcoin bottom is lower than people think

Bitcoin is already very low, but the price of the digital currency can fall much further. While many analysts are talking about a $ 3,000 bottom, an Bloomberg analyst sees a free fall towards the $ 1500. Half of what many hope to be the last station for bitcoin as it goes down.

November started very bloody, but in the last few days the biggest cryptocurrency has become slightly more stable. Tonight came to an end. The coin was again sold massively, causing the price to go around $3,700 dollars.

Mike McGlone, technical analyst at Bloomberg, explains that Bitcoin is stuck in a steady downward momentum. The currency is even at a peak that we have not seen since July, when you look at an indicator called the Average Directional Index (ADI). If that indicator turns out to be high, it means that the downward trend is more severe.

McGlone sets a target of $ 1500 for Bitcoin based on that indicator. That would amount to a further drop of 60%, while we are already 81% below the peak of December last year.

It seems that investors are running like crazy to the emergency exit

"There is little that can prevent the Bitcoin prices from tapping the continuing average of $ 1500. It seems that investors are running like crazy to the emergency exit, "said the analyst. When it comes to causes for the red numbers, he points to the Bitcoin Cash hard fork and taxes:

"The had fork was a key trigger that showed that the technology is still too young. You had those vague figures who threatened to destroy each other, and institutions said 'It might be better if we keep a distance for now.' "

"The trend is lower prices, lower volatility, reduced speculation, and the preponderance of stable coins," said the analyst. He emphasizes how important it is for crypto-assets to establish a stable base in terms of prices. "Unfortunately, we are still far from stable grounds."

If we put our faith in McGlone, there will be months of red numbers. On the other side of the spectrum is Tom Lee, who still insists that Bitcoin will surpass the $ 15,000 mark by the end of this year. That is, however, more unlikely than ever.