Renewed selling pressure in cryptocurrency markets has pulled Bitcoin to the $87,000 region for the second time in 24 hours.
Trading above $103,000 just a few days ago, BTC has deepened its November downtrend.
Bloomberg analyst Mike McGlone stated that the market is structurally weakened, claiming that Bitcoin could experience a “full-blown reversal” and the price could fall to $10,000. McGlone argued that the current structure reminds him of the Great Crash of 2018, when Bitcoin fell from $10,000 to as low as $3,000.
McGlone said Bitcoin could fall back to the $10,000 level if the pressure on risk assets continues. The analyst said late-cycle ETF inflows and the deteriorating macro outlook support this bearish scenario.
McGlone noted that volatility indicators also pointed to fragility, noting that the VIX index was trading close to its 200-day average, while the S&P 500’s 120-day realized volatility fell to its lowest levels since 2017.
The analyst also stated that this Bitcoin sell-off could impact stock markets. He said he expects volatility to rise again, as it did in 2017, stocks to retreat to their averages, and risk appetite to decline further towards the end of the year. According to McGlone, under current conditions, there appears to be no catalyst that can stop the reversal, and “all the dominoes are lined up to the downside.”
Looking at technical levels, the analyst noted that $100,000 has now become a strong resistance level, with Bitcoin stuck in the $90,000-$100,000 range. McGlone stated that if this range is broken, the price could fall to $50,000, and that this level could be considered “normal” on annual charts. However, he reminded that in the short term, intermediate increases within sharp declines can be misleading, as “the strongest rallies are seen in bear markets.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bloomberg-analyst-mike-mcglone-claims-bitcoin-might-fall-to-10000/
