According to Robert Sluymer, bitcoin is in the first stage of a 3 stage bottoming process.
Bitcoin has had a rough 2018 to put it mildly, but Robert Sluymer of Fundstrat Global Advisors says there may be some light at the end of the tunnel.
He said that when you step back and look at the chart you can see a trend starting to establish itself where prices are bouncing off a similar support area, that area being around $7k.
Sluymer says that is the first step you want to see in a bottoming process, some sort of consolidation or a basing taking hold.
There are also some momentum indicators indicating that bitcoin may soon be about to turn.
Here is a detailed chart showing what Sluymer is talking about:
(Source: ~~~ embed:1002223563414343680) twitter metadata:cnNsdXltZXJ8fGh0dHBzOi8vdHdpdHRlci5jb20vcnNsdXltZXIvc3RhdHVzLzEwMDIyMjM1NjM0MTQzNDM2ODApfA== ~~~
As you can see on the chart at the bottom, the RSI indicator is near oversold territory and is starting to turn back upwards, another good indicator that a bottom is being put in.
Typically a level of 30 indicates oversold conditions. Bitcoin currently is showing a 40, after bouncing up from sub-30 levels just recently.
This is a similar setup to what happened during the February and April bottoms.
What needs to happen next?
In order for this bottom to be confirmed according to Sluymer, prices need to start moving up through the recent downtrend.
Specifically, Sluymer says he would like to see prices break through the 15-day moving average which is currently around $7,800.
Once prices get through that level, it will be another confirmation that a bottoming process is taking hold.
Overall, Sluymer says the setup right now is very attract as an entry point for long investors, saying this:
"We think the setup is very attractive here. If you're short we think you should be very careful and reduce your short exposure. I think if you're looking to be long this is where you start adding here to your long exposure."
(Source: https://www.cnbc.com/2018/05/31/bitcoin-finds-a-bottom-after-plunging-from-highs-technician.html)
There you have it, the head of technical strategy at Fundstrat Global Advisors says now is the time you should be buying.
Stay informed my friends.
Follow me: @jrcornel
With the market being so stagnant lately, the same way we saw it jump from $7,000 to $7,400, it sounds like we need another small pump from where we are now to about $7,800 to ensure a bottom. From there I would imagine it's all about getting over the 10K mark. Seeing things move slow recently gives hope that we are in consolidation mode, establishing new floors. Only time will tell but I like the way Robert Sluymer thinks. Nice post.
Good thoughts there, and thanks!
They always say that , and then it falls
Buy! Buy! Buy! 👍💰👍
Make moves calmly when opporunity shows itself, I'd agree now is one such time.
Here we GO!
I am hopeful.
A bounce towards $10k is on the way.
My heart goes out everytime I hear another story thru friends of someone who knee jerked reacted and invested more than they should have in bitcoin after the big run up last year. We all know it will come back but the stress on those families has got to be unbelievable.
Yep. Hopefully they are able to hang on, at some point they will likely get their money back, though it may take some time.
Nice your post
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While I hope this is right, I think a big capitulation sell off is warranted before a bottom. I would also like to see volume during the entire process to serve as confirmation of the trend reversal.
There is a lack of demand for sure. Sell volume is drying up, but so is buy volume. I am fearful that we may have to hit something like $4k-$5k before we can really see a reversal.
great
The amount of days from high peak to low have been about 1 month for BTC. The trend starts after the large drop, check it on the 1 day wicks.
Yep, which means that if those lows hold, the next high would be about one month from now, correct?
If the trend is held, next month should be a gradual bull. If the trend is broken up or down a new equilibrium will be found. My gut tells me this wave will be different somehow, but I am just waiting to make any decisions. Although the trend definitely seems strong from what I've seen.
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standby and hodl
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