The Bitcoin price (BTC/USD) is likely to see even more losses in 2019, according to a Bloomberg article pointing to technical indicators.
The original cryptocurrency has taken a beating over the past year or so and is now down more than 80% from its all-time high, which it reached last December. The coin’s decline intensified after it dropped below the key support level of $6,000 in mid-November.
Bitcoin had another poor session yesterday, as its price fell below the $3,900 mark in the afternoon. Having started the session at $3,958.89, the coin closed it at $3,753.99, which was its lowest level for the day.
Some industry figures have forecast that Bitcoin will rebound next year. But according to a recent article from Bloomberg, the downtrend for BTC, as well as the broader crypto market, could continue next year.
Pointing to the Directional Movement Index, Bloomberg said yesterday that Bitcoin was facing its most pronounced selling trend since the sell-off seen from May to July this year. In addition, the Average Directional Index, an indicator which rises as negative selling trends strengthen, is at its highest level since July, Bloomberg notes.
Bloomberg Intelligence analyst Mike McGlone expects the cryptocurrency decline to continue next year and suggests that Bitcoin is poised to fall to around $1,500.
“There’s little to prevent fading Bitcoin prices from reaching the continuous mean of $1,500,” McGlone wrote yesterday in a note to clients. He added that many investors were looking to exit the market, attributing this behaviour to the recent Bitcoin Cash (BCH) split and selling related to year-end tax purposes, among other things.
After some uneventful early trading, the Bitcoin price has picked up in today’s session, rising towards the $3,900 mark. As of 09:53 GMT, the Bitcoin price stood at $3,870.69, down 0.35 from the same time yesterday. The coin’s total market capitalisation currently stands at $67.4 billion.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.