What’s behind the recent bitcoin rally price to $7,100? Michael Moro, CEO of Genesis Trading and Genesis Capital, thinks the market’s stable reaction to the SEC’s ETF rejections last week played a big role.
Interviewed on CNBC, Moro noted that the selloff that has greeted SEC rejections in the past did not materialize.
The important question now, he said, is how long the $7,100 price level holds.
Bitcoin Price Analysis: Waiting For The Bulls
If the $7,100 price holds for one or two weeks, the bulls will return, he said, and $10,000 is a likely possibility. The bulls are waiting to see if the $7,100 price holds. Asked what will move bitcoin to $10,000, Moro said slow and steady growth will be needed, along with volume.
“What you need to see is the less violent moves of 5% up, 10% up, and a slow and steady growth across the exchanges,” Moro said.“What I also think is important is I think the market now understands that the SEC’s ETF approval isn’t any time soon.”
“I think the bears have realized that they’ve run out of steam,” he added. In addition, on the spot trading side, there were very few sellers around the $6,000 level.
Moro finds it interesting that every time the bitcoin price pops, some people start to sell.
“It’s folks who have managed to scoop up the dip and are selling at the next pop,” he said. “The question is, are the bulls here to stay?” He said a strong buy side demand has yet to materialize. One question is whether the market returns to the $6,000 level because the bulls are still waiting to see if $7,100 price holds.
CME Bitcoin Futures Volume Doubles
Speaking to Moro’s point about the need for volume trading, CNBC’s Bob Pisani pointed out that CME bitcoin futures volumes have doubled, which he attributed to the activity of institutions.
“What’s important here is that the increase in futures volume on CME has occurred while bitcoin went from $6,000 in June to over $8,000 in July and then all the way back down to about $6,000,” Pisani said. “It means that at least some traders are perfectly willing to trade bitcoin for futures on the way up, and also on the way down. It seems like a more active market out there.”
Trading volume has been flat for the much smaller CBOE and on spot markets such as Coinbase.
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