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.”
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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.