After MarketWatch got lambasted for publishing a questionable op-ed regarding a Bitcoin mining “death spiral,” the financial media continued their bearish cryptocurrency coverage on Wednesday. More specifically, Bloomberg News, which covers the crypto industry round the clock, recently had its in-house analysts tout a $1,500 per BTC prediction — far below what many traders deem “logical.”
Bloomberg Analyst Bearish, Expects Bitcoin To Fall To $1,500
While selling pressure has begun to abate, with 24-hour volumes in the cryptocurrency market falling to $14 billion, BTC continued its seemingly endless downtrend on Wednesday. The asset, which ranged primarily between $3,900 and $4,200 for a week, fell under the former price level in recent hours. During one point on Wednesday, the foremost cryptocurrency suddenly fell to $3,668, nearing its one-year low around $3,500, originally established in November.
Related Reading: November Has Been Bitcoin’s Worst Month for Seven Years
But since its initial sell-off, BTC has found itself amid a veneer of stability, finding a short-term foothold at in the mid-3700s, as bears presumably catch their breath. Yesterday’s move clearly exhibits the sentiment that volatility has likely returned to cryptocurrency markets, after the aforementioned multi-day lull.
The financial market resource recently noted that the Directional Movement Index (DMI) indicates that after BTC fell under $6,600 in July, the asset has been “caught in a strong selling trend.” While a single indicator isn’t enough to signal a downtrend, Bloomberg also drew attention to the Average Directional Index (ADX), which is nearing 50 — a purportedly bearish sign.
In a note relayed through Bloomberg News, coupled with a subsequent interview, Mike McGlone, an analyst at the outlet, has made it clear that the aforementioned indicators point to lower lows for Bitcoin. McGlone, who hasn’t been afraid to tout his doomsday sentiment in the past, explained that BTC could fall another ~60% to $1,500, with altcoins likely falling close behind the cryptocurrency godfather.
Interestingly, while Bitcoin Cash’s hard fork has come and passed, the analyst drew attention to the contentious event, along with year-end tax selling, as purported catalysts for Bitcoin’s move to $1,500. Elaborating, while also touching on market cycles, McGlone noted:
“We’re at a classic psychological stage where the market is reversing the 2017 frenzy… 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.’”
Crypto Industry Savants Still See Long-Term Potential
Although McGlone painted a dismal picture for crypto’s prospects, which were already beaten and bruised to hell and back, a number of industry insiders have maintained their abiding faith in this revolutionary innovation.
Roger Ver, the infamous chief executive of Bitcoin.com, recently told the aforementioned outlet that the future is brighter than ever for cryptocurrencies. Speaking to Bloomberg on the streets of Tokyo, the zealous decentralist and anti-government crusader drew attention to a number of fundamental factors, including the Japanese FSA’s recent approval of a self-regulating crypto consortium, growing awareness of this innovation, and ramping adoption.
Keeping all this in mind, coupled with the fact that hackers and scammers continue to target the industry, Ver mused that he is still “incredibly bullish on the entire crypto-coin ecosystem.”
Mike Kayamori, chief executive at Quoine, also expressed a similar thought process. Kayamori, who heads the Japanese blockchain-centric startup, noted that while “nobody knows” where Bitcoin will bottom, taking historical trends into account, a reversal may be inbound. The Japanese crypto proponent added that by the end of 2019, he expects for BTC to surpass the all-time high it established in the wee hours of 2017.
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A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.
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