If bitcoin holds its value around $7,150, cryptocurrency trader Michael Moro says, it could be on its way back to $10,000.
“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 said Wednesday on CNBC’s “Fast Money.”
The Securities and Exchange Commission rejected nine applications to create a bitcoin exchange-traded fund last week, due to worries about bitcoin price manipulation, Business Insider reported. Similar news has in the past sent bitcoin tumbling, but this time, the price rallied.
“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,” said Moro, CEO of cryptocurrency trading firm Genesis Trading and of Genesis Capital.
To get back up to that $10,000 price, bitcoin is going to need slow and steady growth in price and trading volume, rather than violent 5 percent and 10 percent jumps, he said.
“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,” he added.
Moro said if bitcoin holds just above its current level, bulls will jump back in.
“I think the key level is $7,150, to be more exact, but if we can hold that next week, I do think we will see a sentiment turnaround in the market,” Moro said.
Bitcoin was trading around $7,050 Wednesday evening, according to Coindesk.
https://www.cnbc.com/2018/08/29/crypto-trader-the-bulls-will-be-back-if-bitcoin-holds-above-7000.htmlI still doubt this. Not every "expert" opinion is valid, and some of them merely say things for their own benefit (not saying that this person is doing so, so don't get me wrong), or to get more media coverage with bullish news in a bearish market.
Anyways, I think that it's extremely unlikely to see a trend reversal happening to all of a sudden see bullish activity coming out in a period of such bearishness.
The bear market doesn't seem to be ending and this pump at the moment should only be temporary. The $10k resistance which is much stronger than the author suggests it to be is likely not to be broken at this stage either. Just because bitcoin holds it current level, doesn't mean that the support is necessarily there yet. We don't even know if $6k is going to continue to hold as support.