The cryptocurrency market went into a steep dive, and that is not going to get out of it, an analyst at Bloomberg Intelligence Mike McGlone. Citing technical analysis, he notes that the index of the average direction (Average Directional Index ADX), which indicates the presence or absence of a trend in the market, is now the highest since June and is 47 units. And if the indicator reaches 50, we’ll know what a real panic in the market.
In the case of the strengthening bullish trend, panic selling will increase, but the rate of bitcoin will fall by 60% from current levels, predicts specialist, i.e. to the level of $1 500,
Analyst blames the collapse of the market of the team working on hardforum Bitcoin Cash and staged the so-called “war of hashes”. In addition, on sale is compounded by seasonal factors, namely the sale of digital assets for the payment of taxes at the end of the year.
“After a hard forks (hardwork Bitcoin Cash held on 15 November, in which were two coins: Bitcoin and Bitcoin ABC SV — Ed.) appeared characters who threatened to destroy each other, so the investors said, “We better stay away from this for some time,” said McGlone.
He noted that low prices reduce speculation and volatility, so a similar trend can be considered positive.