Bloomberg Intelligence Analyst: Bitcoin Will Resume Downtrend Soon
Throughout the past two months, the Bitcoin price has recovered from $3,210 to $3,850 by nearly 20 percent after demonstrating a spike in demand in a low price range.
Mike McGlone, a Bloomberg Intelligence analyst who has been skeptical of crypto previously, noted that this “relief rally” could be a byproduct of the end of 2018’s tax season. Yet, he explained that this bounce could end shortly, as this market resumes a “longer-term bear market.”
From November to December, all large crypto assets showed wild volatility in a low price range with no signs of stabilization. Throughout the past three months, the daily volume of cryptocurrencies averaged at around $15 billion, which is fairly low considering that the trading activity of an asset tends to increase in volatile periods.
Another analyst, Mati Greenspan of eToro said that the technical analysis is still closer to the bottom than the top. According to Greenspan, Bitcoin and the entire market still has a strong fundamental backing as blockchain industries hire e-masses to meet up with the growing demand of the technology. He said that as more projects appear online, it has become clear that there is still a lot of interest in cryptocurrencies even with the current market downtrend.
Fred Wilson has said that the asset may bottom sometime during 2019, which will come before cryptocurrencies slowly enter a new bullish phase.