Michael Moro (CEO of Genesis Trading) made a prediction that Bitcoin will bottom out at about $3,000 after a week that saw the price of Bitcoin drop to a low $4,035.
In response to a question about how bad the rout of the crypto market could get, he stated that although day traders and casual wears are not favoured with the situation, this is not unchartered territory for Bitcoin. He noted that throughout the ten years of Bitcoin’s existence, the coin had seen on five occasions, 75% or greater drawdowns.
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Considering Moro’s view, institutional investors will not be too bothered about where Bitcoin ends 2018, due to the fact that they are more concerned about its movement over 3-5 years. In addition, he noted that the $6,000 cost of mining one Bitcoin will reduce as the hash rate of the Bitcoin network drops. As a result of this, he said the biggest miners will continue mining, even if it entails mining at a loss until the difficulty adjustment occurs on the Bitcoin blockchain.
The Next Critical Support Level is $3000
When Moro was pressed to give his price floor prediction for the crypto market lodestar, he said: “It’s really difficult. There are small levels of resistance, and we’ve seen the 4000 level get tested twice now in the last couple days, but I really don’t think there’s too much in the mid-3000s, so you won’t find much until you hit the 3k flat level.”
Moro also made it clear that, he doesn’t see this as a terminal decline for bitcoin, stressing the point that while the trading volumes of bitcoin are 60% lower than the bull run of 2017, they are still “multiples higher” than at the beginning of 2017. Due to this reason, he said that it will be great if bitcoin is examined in the context of a longer time frame.