Robert Sluymer Sees the Crypto Markets Recovering Well
Crypto markets will have a massive rise
Fundstrat’s Robert Sluymer has given his technical analysis of 2018 cryptocurrency markets mainly focusing on Bitcoin and Ethereum. Sluymer had a particular comparison between the impact of uncertainties around the regulation of digital currencies and taxation on trading prices in January this year which saw the price of Ethereum drop from 1,000 dollars to 350 dollars while that of Bitcoin dropped from 19,000 dollars to 7,000 dollars.
While talking about the market’s response to this week rumors of an ongoing probe on Ethereum by SEC, Slyumer said that the currency was positive and is moving well towards the 700 dollar mark. He, however, noted that it was facing a lot of resistance around its 200 moving day average.
Slyumer further pointed out that momentum indicators had shown that Ethereum was in fact overbought before the recent price correction. Robert Sluymer generalized the positive trend to most digital currencies noting that Bitcoin was enjoying tremendous support. According to him:
“Bitcoin is beginning to stall at the 200-day moving average, momentum’s gotten overbought were beginning to see consolidation because there is tremendous support here. The main point is the downward trend which has been there since January which is now reversing. The question we are now asking is whether we are seeing a bigger bubble or is this a bottom phase? The answer looks like the bottom phase which is taking hold, and you should be buying this pullback from the short-term overbought.”
Slyumer also highlighted some onlookers’ comparisons of a crypto bubble in 2018 and the NASDAQ bubble in 2002 which suggests that the early year collapse could be followed by momentous plummets. He, however, refuted this claims saying that the Bitcoin market has been nowhere near the institutional and private investment which NASDAQ witnessed in it 2002 bubble. More to that Bitcoin’s bull market has been around for few years and is now very positive given 70% of its correction back to the 200-day moving average.
Robert Sluymer supported Fundstat’s Tom Lee who had stated that there was a massive sell-off of crypto-holdings before the US tax day. According to Lee, the tax day was behind cryptocurrencies’ worst ever first quarter performance stating that in the early 2018 low were because of the combination of different factors coming together to form a storm.
In conclusion, he emphasized that crypto market recovery this time is orderly and timely adding that a bullish outlook would happen in the future. Lee predicted in January that Bitcoin’s price would hit 25,000 dollars before the end of 2018.