While many analysts and experts expect the inevitable explosive growth of cryptocurrencies, at least one man stands alone and does not exclude that the price of bitcoin will continue to decline. In its latest forecast BitMEX CEO Arthur Hayes mentions already $2000 – it is up to this level, he suggests, may fall the first cryptocurrency.
Such forecast the head of the popular exchange derivatives announced on Friday, November 2, in the next edition of the “Digest of capturadora”
Check out the new hotness. The latest Crypto Trader Digest just dropped. https://t.co/h2YrqcUafF
— Arthur Hayes (@CryptoHayes) November 2nd, 2018
Earlier this week, Hayes said that the bearish sentiment in the market can last for about a year and a half. Specific price framework in which forecast he did not name, however in the ensuing letter to the investor Chapter BitMEX already calling direct numbers.
According to him, while studying charts traders often considered the beginning of a bear market the moment when the asset falls below the cyclical peak, more preferred strategy is to start counting from the moment when bitcoin price drops below the 200-day moving average (DMA).
Based on this methodology, bitcoin has entered the bear territory on 12 March, when his price was $9152.
Since then, dropping below the 200 DMA, bitcoin lost value in only 37%. However, taking into consideration the previous performance of the first cryptocurrency, as it fell much lower, Hayes believes that to complete the bearish cycle is still very far away – according to him, before the initiative goes to the bulls, the price of cryptocurrency has the potential to fall to $2000.
“How deep can we go? Fall by 75% from $9152 will lead us to $2000. Therefore, the range between $2000 — $3000 is my new hot spot. Don’t tell Michelle Lee”, wrote Arthur Hayes, referring in the last sentence on the lead channel CNBC, which took his recent interview.
Other reasons supporting his forecast, the head of BitMEX called the current low volatility of bitcoin.
“Contrary to popular belief, bitcoin, if he wants to gain wide acceptance, we need volatility. The price of bitcoin – is the best and most transparent way of determining the health of an ecosystem. It [volatility] shows the world that something is happening – whether good events or bad,” says Hayes.
Therefore, he argues, if the volatility will remain at current low levels, the price will gradually decline.
According to him, the best that can make traders to try to predict when will the bottom really, however, as a few sarcastic remarks Hayes, they probably will not have the courage for serious actions at this moment.
“You know, when it came bottom. But most likely you’ll be too afraid to press that dreaded button “Buy”, added Hayes.