In a recent interview on Bloomberg, McGlone outlined his thesis that Bitcoin will be in a bear market through 2019, where he specifically referenced the Average Directional Index, or ADX, which rises as negative selling trends strengthen.
The ADX is currently sitting at 47, its highest point since July, and crossing 50 would mark the most bearish pattern of 2018. Given the current technicals, McGlone has set a price target of $1,500, stating that he expects BTC to reach this value through a slow bleed.
In addition to the technicals, McGlone believes that prevailing market sentiment coupled with notable fundamental events has helped drive prices lower.
“We’re at a classic psychological stage where the market is reversing the 2017 frenzy,” said McGlone. “The hard fork was a key trigger that signaled the technology is way too nascent. You had these dicey characters threatening to destroy each other and institutions said ‘It might be best if we stay away from this for a while.'”
Bitcoin is currently down 10% over the last 24 hours to $3,287, meaning the largest cryptocurrency would have to drop another 54% to reach McGlone’s price target.
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.