Speaking on CNBC yesterday, Fundstrat’s Robert Slyumer has given his opinion on the BTC charts. He believes that the current Bitcoin downtrend[1] can only be reversed if the coin creates a short-term break, through the $6,300 mark.
The Bitcoin analyst studied the Bitcoin 15-day moving average charts from May and said:
“It really is a no-man’s land from a trading standpoint. I think if you’re a very short-term trader… we have a critical stop level at the $5,800-6000… with a resistance level of $6,300-6400. If it can rally through that, I think there’s a chance Bitcoin could start to turn.”
Bitcoin Downtrend: The Moving Average Charts
A 15-day moving average chart is a good indicator of market trends and can help forecast whether market trend is positive or negative. Slyumer looked back over Bitcoin’s 15-day moving average charts going back to 2017.
These charts indicated that the crypto markets have shown progressively higher lows. A “very critical support” for the coin came at the $7,000 level this year and Slyumer focused on this point as a turning point. Because Bitcoin lost this support level and equally failed to cross the $7,800 resistance threshold on the upside, it created “lower highs” and began an overall downtrend.
Bitcoin is currently defending the $6,000 level and is trading below its 15-day MA trendline for late 2017, early 2018.
In Slyumer’s opinion, $5,800-$6,000 is now the “absolutely critical” support level for Bitcoin. If it fails to hold then the coin will decline further to the $5,000-$5,500 range. Until we see the coin holding above this support level then the downtrend is inevitably going to continue.
