Even tougher times await bitcoin ahead, as the downward trend for the first cryptocurrency continues. This means that the price of the coin could fall to $1.500, says Bloomberg Intelligence analyst Mike McGlone. BTC is currently trading above $3,750.
November was a truly depressing month for bitcoin and for the entire cryptocurrency market as a whole. However, it’s not the end of the dark times, McGlone assures. The analyst says that the sale of crypto assets will continue, and the bearish trend in the market still persists.
Mike McGlone drew attention an indicator for bitcoin called the Average Directional Index (ADX). It grows with the increasing sales trend and is at its highest level since July — around 47. If the ADX rises above 50, this will be a signal of strengthening the existing bearish trend.
According to the expert, at the moment bitcoin begins the next stage of decline, continuing from November 14, when a multi-month support was broken at the level of $6,000. McGlone believes that it is almost impossible to prevent the price of the most popular digital asset from diminishing to $1,500.
The reasons for such trends are extremely clear. The analyst says that sales caused by the start of the tax season affect the market situation. Also, the prices of crypto assets have been brought down by an avalanche-like exit of investors, which began because of BCH hardfork.
A Bloomberg analyst believes that there are players on the market that threaten mutual destruction. Therefore, institutional investors have decided for some time to stay away from crypto assets until the industry becomes more mature.
McGlone believes that further trends for the market are lower prices, lower volatility, reduced speculative operations, and the prevalence of stable coins. It is likely that under such conditions digital assets will begin to attract more institutional investors, as more tools appear for them.
It is worth adding that the crypto community is also waiting for the SEC decision to launch bitcoin-ETF. There is a high probability that this will happen in the first quarter of next year. Also, competent speakers say that this decision may be positive. In this case, we can expect a rise in the value of the first cryptocurrency.
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