Mike McGlone, a Bloomberg intelligence analyst believes Bitcoin could fall to as low as $1,500, representing a fall of roughly 70% from current levels and a $26 billion market cap for the largest digital currency.
According to a chart indicator called the Average Directional Index (ADI for short), BTC is at a peak not seen since July. If the indicator is high, it shows high levels of downward trend vigor.
McGlone said that he sees a possible price target of $1,500 for bitcoin. Hitting that price would mean another 60 percent fall from its current rate, which is already down 81 percent from last year’s all-time high.
McGlone credits his theory to a rush of exits from investors, the recent Bitcoin Cash split as well as selling related to year-end tax purposes.
The cryptocurrency market has experienced a huge amount of selling in the month of November which resulted in billions being washed off from the crypto market. Mike mentioned that the market is currently reversing the rise of 2017.
The Bloomberg report also mentions the recent SEC crackdown on ICOs and the commission’s hesitancy to approve a bitcoin ETF.
Other crypto experts see bitcoin dropping further as well, but some see a bottom possibly higher than $1,500.
According to McGlone, “The trend is lower prices, lower volatility, reduced speculation, and the preponderance of stable coins,” he said, referring to tokens designed to minimize volatility in prices. Until then, cryptocurrencies have to find a base to see more stability and “we’re not near that base yet.”