Bitcoin shares could bleed another 30 percent before they bottom, cryptocurrency trader Michael Moro told CNBC on Friday.
“You really won’t find [the floor] until you kind of hit the 3K-flat level,” the Genesis Trading & Genesis Capital Trading chief said on “Squawk on the Street.”
“It’s really difficult. There are small levels of resistance,” he said. “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.”
Bitcoin was down 40 points at one point early Friday, continuing a nosedive that began last December soon after the futures exchange launched on CME. The digital currency peaked north of $17,000 in early 2018. Now it’s trading about 75 percent below that value, at around $4,400.
Moro advised against buying the dip but said long-term investors are more equipped to handle bitcoin’s plunge and wait for the price to rebound.
“This is about the fifth or sixth 75 percent-plus drawdown that we’ve seen in the 10-year history of bitcoin,” he said. “And so if you have that [long-term] lens, 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.”