Today, Bitcoin is close to the lowest level of 2018. At the time of this writing, BTC has recovered slightly and is trading at a price of $ 3,821. Despite the growth correction, Bitcoin continues to move within the short-term bearish trend, which is well marked on intraday charts.
The area above the current price is limited to technical resistance levels, including SMA 50 (1 hour), which stopped the most recent recovery attempt.
The next obstacle is created at the level of 3,900 – 3,920 USD and SMA100 (1 hour), followed by an important psychological level of 4,000 USD.
From a more long-term perspective, cryptocurrency also falls in a bearish trend. According to the directional movement index, which is used to determine market trends, the current sale is the strongest since the mid-year crash, when BTC fell from $ 9,300 to about $ 6,600.
Experts at Bloomberg Intelligence, including analyst Mike McGlone, believe that this technical setup implies a lot of “pain” for cryptocurrency. Bitcoin can drop by 60% from its current level, collapsing to about $ 1,500.
McGlone stated the following:
Little time is left to prevent the price from dropping to $ 1,500. We are at the classical psychological stage when the market repeats the madness of 2017. The stiff plug was a key trigger that signaled that technology was just being born. Many risky characters were present, threatening to destroy each other, because of which institutional institutions decided: “It would be better if we stayed away from it for a while!”
And what do you think about this? Will the BTC price drop to $ 1,500?
