The usual suspects seem to be back at the Bitcoin game once again, with CNBC Fast Money hosting yet another guest to speculate on the future price action of the ever so volatile crypto market.
“We Are More Likely To See 10k, Than 5k”
On Wednesday, CNBC Fast Money, which covers the crypto industry on a near-daily basis, took on Michael Moro, CEO of Genesis Trading and Genesis Capital, as the guest industry insider.
— CNBC’s Fast Money (@CNBCFastMoney) August 29, 2018
Over the past few days, Bitcoin surpassed the $7,000 price level for the first time in three weeks, with no clear catalyst to the surprise of many. Leading some, including CNBC host Mellisa Lee, to ask why has the crypto market seen a recovery. Responding to the query, Moro first drew attention to the SEC’s most recent crypto-backed ETF decision and the correlated increase in open Bitcoin short positions prior to the verdict. He elaborated, explaining:
“Once the news broke about the SEC rejection and the price actually held, we didn’t see the 5, 10, 15 percent sell-off that you’ve seen in previous (ETF) rejections and that the technicals right around the $5,800 to $5,900 level helped. So I think the bears have realized they’ve run out of steam.”
The Genesis Capital CEO brings up an interesting point about how the market did not react as many expected, leading a multitude of short sellers to cover their positions as Bitcoin found strength instead of falling through $6,000 and below. And the fact that Bitcoin has not only held $6,000 but seen a substantial recovery since the SEC’s denial of the ETFs clearly indicates that the bears are running out of crypto to sell.
Moro then went on to highlight his $10,000 prediction, doing his best to lay out his reasoning behind this bullish forecast, stating:
“I think that the number one that is going to have to happen is slow and steady growth. And as Bob Pisani mentioned before, volume. What you need to see is the less violent moves of 5 percent up or 10 percent up, and a slow and steady growth across the exchanges. What I also think is important is that I believe that the market now understands that the SEC’s ETF approval isn’t going to happen anytime soon. The market’s sentiment regarding the approval process is far more muted, which I think is a healthier outlook over the next 12 months.”
But it doesn’t seem to be all sunshine and rainbows, with Moro noting that the buy-side volume has not been seen as of yet, which indicates that bulls might not be ready to push this asset upwards.
Nonetheless, Genesis Capital executive revealed that $7,000, or $7,150 to be exact, will be the price to watch over the next week, as if Bitcoin holds above this level, $10,000 could be this asset’s next stop on the gravy train upwards. If the price of BTC somehow manages to break under $7,000, however, he added that the aforementioned $5,800-$6,000 line of support will continue to be a level of interest.