Bitcoin slumped below $3,600 on Coinbase this evening as the bears continue dragging the cryptocurrency back into the trenches. At this time, shorts are rising dramatically on Bitfinex, which suggests many investors are expecting further downside.
Michael Moro Talks About Bitcoin on CNBC
Meanwhile, the CEO of trading company Genesis Capital Trading, said in an interview with CNBC (23NOV) that Bitcoin could bottom at $3,000.
Speaking to Squawbox, Michael Moro said that he expects Bitcoin to drop as much as 30% before bottoming close to $3,000. Moro also mentioned minute resistance levels but went on to say that he does not believe Bitcoin can maintain mid 3k levels.
“You really won’t find the floor until you hit the 3k-flat level” – Michael Moro
On the other hand, the CEO also said that long term investors were likely to sustain this dump until a potential rebound. However, he did also advise against “buying the dip”.
How Far Will Bitcoin Fall?
Moro was then asked about the lowest estimate possible for Bitcoin to which he pointed out that the hash rate has dropped which makes Bitcoin cheaper to mine. With this in mind, while Bitcoin continues to fall, many Chinese operators were forced to sell their mining equipment at a loss – some at just 10% of their original cost.
As you know, the Bitcoin Cash fork was seen as a catalyst for the drop in recent weeks. However, some analysts are quick to compare this drop to the tech bubble from which Amazon and co emerged many moons ago.
At the time of writing this post, the price of Bitcoin is $3, 644 on Coinbase.