Market expert says Bitcoin has found its bottom

A leading cryptocurrency market analyst has declared that Bitcoin has found its bottom.

Bitcoin has recouped losses from the last week and is in now “rally mode” as trade threats are keeping equities on the back foot.

One market strategist says the leading cryptocurrency has now finally found its bottom.

Robert Sluymer, Fundstrat Global Advisors’ head of technical strategy, explains during CNBC’s “Futures Now” on Thursday, saying:

“When we step back, we see the first phase starting to happen.

“We think Bitcoin is starting to bottom off some very key support around $7,000 and we think it’s going to start a recovery process here.”

Bitcoin has flirted with its key support level around $7,000 several times this year and later recovered.

Recently, prices dropped as low as $7,054 this week before bouncing back higher.

“That’s certainly the first step in a bottoming process – to see some sort of consolidation or abasing taking hold,” he said.

Bitcoin Has Found Its Bottom, Will Soon Rally, Says Crypto Expert

According to Sluymer, momentum also looks very positive, indicating a fall in Bitcoin may have found a floor, adding:

“That RSI indicator in the bottom of the chart is very oversold and starting to bottom so that’s really part of that bottoming phase taking hold”

Bitcoin’s relative strength index is a measure of its momentum and is currently trading around 40.

Bitcoin’s relative strength index is a measure of its momentum and is currently trading around 40.

Typically oversold conditions are indicated by a  level close to 30.

“The next thing that has to happen is to see Bitcoin actually rally through the downtrend and we use the 15-day moving average, it’s very simplistic, but it’s a pretty good proxy across most markets,” states Sluymer.

Its 15-day MA (moving average) of around $7,800 “will be the next hurdle for it to get through.”

Bitcoin last traded at the $7,800 level on May 23.

“We think the setup is very attractive here,” adds Sluymer.

“If you’re short we think you should be very careful and reducing your short exposure.

“I think if you’re looking to be long, this is where you start adding here to your long exposure.”

Bitcoin is currently trading at around $7,450, according to the live price charts.