Bitcoin bottom: Are we there yet?

Bitcoin breakthrough?

Bitcoin bottom: Are we there yet?

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It’s Friday and it’s time for the question of the week. So, are we at the bitcoin bottom yet?

Rob Sluymer, technical strategist, Fundstrat Global AdvisoryFundstrat Global Advisors Technical Strategist Robert Sluymer told CNBC bitcoin may have finally found its bottom and explained his analysis of bitcoin trends.

“There is a support line that goes all the way back to the fourth quarter of last year. It touches the low in February and then touches the low again in April. And then just this week bitcoin has managed to bounce off that level to around $7,000 and that’s certainly the first step in the bottoming process to see some kind of a consolidation or basing taking hold,” Sluymer said.

The Relative Strength Indicator is relatively oversold as that bottoming phase takes hold. Sluymer says the next thing that has to happen is to see bitcoin actually rally through the downtrend.

Next recovery hurdle is $7,800


Fundstrat bitcoin bottom chart


He said Fundstrat uses a simple 15-day moving average which is a reliable indicator across most markets. He said the next hurdle for bitcoin would be the $7,800 mark which it needs to break through.

Sluymer said short-sellers need to be very careful in this market and start reducing short exposure. “If you’re looking to be long, this is where you start adding to your long exposure.”

You can see Rob Sluymer’s CNBC interview here

Visual courtesy CNBC