It seems like the most dominant cryptocurrency is everywhere today on our DC Forecasts Bitcoin news site, mostly because of its new drops and tough times. However, for one analyst at Bloomberg, the downward trend is not over yet – and the flagship cryptocurrency (Bitcoin) may be possibly heading towards $1,500.
In a difficult year overall for the crypto market, Bitcoin has reached a yearly low this November and is currently in bearish action. It dropped more than $200 today only, and is now trading at around $3,800 in a two-day decline.
The new report released on Bloomberg yesterday puts the technical analyst Mike McGlone in the focus, explaining that Bitcoin is “currently stuck in stiff downward momentum.”
After seeing many chart indicators, McGlone believes that the downtrend is strong and a possible price target of $1,500 is realistic for Bitcoin. Hitting that price would obviously mean that Bitcoin has to fall by 60% from the current levels – which are already down 81% from the all-time high of almost $20,000.
As McGlone said:
“There’s little to prevent fading bitcoin prices from reaching the continuous mean of $1,500 […] A rush to the exits among investors seems to be in place. The hard fork was a key trigger that signaled the technology is way too nascent. You had these dicey characters threatening to destroy each other and institutions said ‘It might be best if we stay away from this for a while.'”
The report also mentioned the recent SEC crackdown on ICOs and the commission’s hesitancy to approve a Bitcoin ETF.
“The trend is lower prices, lower volatility, reduced speculation, and the preponderance of stable coins. There is a need for crypto assets to set a firm price base. Unfortunately, we’re not near that base yet,” McGlone concluded.
No one knows if Bitcoin will be dropping further – but many see a bottom that is possibly higher than $1,500.
Gemini Founders (Winklevoss Twins) Launch A New Mobile Crypto Trading App
“A lot of our decisions have perhaps given off a perception that we’re more institutional-based. The reality of the situation is that we have a diverse customer base. And the retail story is just beginning.”The twins and Gemini founders also revealed their plans to expand to the Asian crypto market where they will face stiff competition from the thriving exchange industry that includes companies such as Bitfinex, Binance and Huobi.
Bitcoin Grows Its Dominance Rate To 55.14% Amid Crypto Price Panic
Bitcoin Hash Rate Drops, Miners Shut Down Their Devices
“In the six-day period ending 3rd December, 21.8% fewer blocks than the expected 144 per day were found, as miners left the network before the difficulty adjusted, and as a result, fewer blocks were found. Therefore in the short term, there was a 21.8% fall in mining incentives on top of the impact of the declining price.”So the conclusion would be that all of the crypto miners are operating at a loss right now, but this should not have a strong impact on Bitcoin itself.
Bitcoin And Ethereum With New ‘Bottom-Like’ Drops
“Rejected by previous support. Seems to be forming a descending channel on the LTFs (aka a way to visualize a downtrend). I often use channels for confluence with horizontal levels (both the rejections from the black horizontals were also at the channel boundary).”When it comes to the short-term trend of ETH, another analyst named Edward Morra raised the possibility of ETH dropping to $55 and said:
“If ETH bulls lose this support and low set at $83, it is basically vacuum till next meaningful support around $55 – $45, another 35% downside from here.”If Ethereum drops by another 35%, tokens will definitely bleed out and continue to lose their value from the already low price range, which could eventually lead some to lose all of their value in the short-term.
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