Bitcoin might be facing tough times again, as analyst Mike McGlone warns that prices could fall to $10,000. He made these comments during a recent segment on Bloomberg TV, noting that Bitcoin’s current conditions resemble the dramatic drop observed in 2018, when values plummeted from $10,000 to about $3,000.
McGlone expressed that if negative pressures on risk assets persist, it’s plausible to see Bitcoin reverting to that $10,000 mark. He cited several factors contributing to the vulnerability of the market, including a growing token supply, late-stage ETF inflows, and a softening macroeconomic environment.
Amid this volatility, he highlighted situations like the VIX index lingering around its 200-day average, underlining that fluctuations in stock prices are expected. Notably, the S&P 500 has also declined to levels not seen since 2017.
McGlone cautioned that the escalating chaos affecting risk assets could lead to further declines in equities. He did not see any clear catalysts that might stop Bitcoin’s downward trend. Furthermore, he identified $100,000 as a new resistance level after Bitcoin’s retreat from that point earlier this month. Currently, he observes the market trapped between the $90,000 and $100,000 range, with potential drops toward $50,000 if the situation deteriorates.
He pointed out Bitcoin’s 200-day moving average as a critical indicator, reflecting a concerning trend similar to what occurred in August. This year, the Bloomberg Galaxy Crypto Index has already dropped by 14% after an initial recovery.
Right now, Bitcoin is struggling below its yearly uptrend line and all major moving averages. Attempts to rally back towards $100,000 have quickly faltered, revealing the aggressive stance of sellers at previous support levels. The Relative Strength Index (RSI) indicates it’s hovering around 29, suggesting an oversold scenario; however, a reversal hasn’t materialized yet. The next notable demand area appears to lie between $86,000 and $82,000, and buyers will need to reclaim $95,000 to mitigate a further decline.
If they fail, there may be a risk of falling into deeper support levels.
