Genesis Trading CEO Michael Moro believes if Bitcoin price stays about $7,000, the bulls will rush back in to invest in the cryptocurrency.
People love to follow trends despite the fact that everyone considers themselves an original thinker. The same mentality holds for most investors as well. A stock or commodity gets hot, then everybody jumps in to grab a piece of the pie. When the situation turns cold, everyone beats a hasty retreat. This reality is why a cryptocurrency trader believes that if Bitcoin price continues to hold above the $7,000 mark, the bulls will rush to get back into the market.
Sustained Bitcoin Price a Necessity
Michael Moro is the CEO of Genesis Trading and Genesis Capital. He was talking to CNBC’s Fast Money about how the crypto bulls could be lured back into the market. He says:
If the [$7,000] level holds, say for the next week, two weeks, the bulls will 100 percent be back. They will be more comfortable that the lows for the year are in, and that we are more likely to see $10,000, rather than $5,000.
Moro noted that the recent SEC rejection of several Bitcoin ETF applications did not lead to a significant drop in Bitcoin price. It is true that the price of the world’s number one cryptocurrency had been steadily increasing over a two-week span in mid-August, and many put such a rise in the belief that a Bitcoin ETF would be approved. It should be noted that the SEC is reviewing the rejections, as well as putting off until the end of September the fate of another Bitcoin ETF application.
Of the SEC rejection, Moro says:
Once the news broke about the SEC rejection and the price actually held, we did not see the 5, 10, 15 percent sell-off that you’ve seen in previous rejections. So I think the bears have realized they’ve run out of steam.
Getting Bitcoin up to $10,000
Moro further tells CNBC that a steady, sustained growth in the price of Bitcoin is what is needed to get the cryptocurrency up to $10,000. This is a far cry from the volatility usually associated with the virtual currency, but the last few weeks have shown that it is possible. Moro further adds:
I believe the market now understands that the SEC’s ETF approval isn’t any time soon. So I think that the market sentiment regarding the product and the approval process is now far more muted, which I think is a healthier outlook for the next 12 months.
Moro finished off his discussion by saying that $7,150 is the “key level” for the value of Bitcoin. If the cryptocurrency can stay at around that level for the next one to two weeks, then the investor bulls will move back in. The result would be a further push in Bitcoin’s price.
Do you agree with the opinion of Michael Moro? Let us know in the comments below.
Images courtesy of Shutterstock.