Singapore, SINGAPORE – Another day and another report interview on CNBC’s Squawk Box that claims that another fall for Bitcoin (BTC) is possible. This time, it’s a roughly 30% fall to US$3,000 as the bottom according to Genesis Trading & Genesis Capital Trading CEO Michael Moro.
“You really won’t find the floor until you kind of hit the 3K-flat level.”
“We’ve seen the 4,000 level get tested twice now in the last couple of days, but I really don’t think there’s too much in the mid-3s.”
Genesis Trading is a full-service, institutional trading firm focused on digital currencies, providing two-sided liquidity daily for buyers and sellers. Where you can borrow digital currencies over fixed-terms and engage in OTC short-selling.
The timing of the cash has been attributed to the Bitcoin Cash (BCH) civil war. It was also mentioned that tourist in the space during the peak of the bull run are getting out taking gains or cutting losses. Struggling crypto funds will also not be up next year and are likely to lick their wounds and start again.
If one is considering buying the dip, Moro adds:
“From a technical standpoint, it’s absolutely been ugly. The drawdown from mid-December last year has lasted for 330 days has seen no abatement in terms of price pressure. The flow on the retail side was too much. I don’t believe institutional investors really ultimately care where the price of bitcoin ends in 2018 simply because they’re looking at things three to five years out.”
What’s not mentioned is that Asian markets such as China and South Korea are still actively trading, and scalping is ongoing on exchanges despite hiccups such as OKEx changing the terms on their BCH Futures contracts to the chagrin of many short-changed Asian traders. Being registered in Malta allows them to skirt around the accusations of market manipulation. Dead cats not landing on their feet are also not buying the bounce ushering in the weekend. Some are using the C-word already but “Capitulation” is likely waiting at US$3,000 with no new capital to soak up the mess.