Fundstrat’s Robert Sluymer Gives His Technical Analysis of Bitcoin: “It Really Is a No Man’s Land”

Siamak Masnavi

On Wednesday (27 June 2018), Fundstrat Global Advisors' Head of Technical Research, Robert Sluymer, gave his technical analysis of Bitcoin (BTC) on the "Off The Charts" segment of CNBC's Fast Money and explained why he believes that Bitcoin is currently in "no man's land."

Sluymer started by saying that if you look at the 15-day moving average chart for Bitcoin for the period September 2017 to June 2018, you will notice that:

"we have a downtrend in place... and right around the $5800 level is absolutely critical support. A break of that... I think it takes Bitcoin to $5500 and that takes you to the trading range between $5000 and $5500."

Then, looking at the shorter term 15-day moving average chart (1 May 2018 to 27 June 2018), he observed that two critical support levels, at $7500 and at $7000, had been broken:

"So now what? What do you do? It really is a 'no man's land' from a trading standpoint. I think if you are a very short term trader, you have a critical stop level just around the $5800 level, and the key resistance level that I think Bitcoin has to get through is around the 15-day moving average, that's $6300–$6400. If it can rally through that, I think you've got a chance that Bitcoin is going to start to turn. Until then, the downtrend is intact; you have to respect that downtrend... you've got to wait for confirmation from a price standpoint before implementing long side trades."

Twodays before his appearance on Fast Money, Sluymer had sent out this tweet:

When asked on Twitter, why he was focusing on the 15-day moving average, Sluymer replied:

Going back to the show, the host, Melissa Lee, asked Sluymer if he still agreed with his colleague, Thomas Lee, about Bitcoin reaching $25,000 by the end of 2018. He said that looking at the charts now, it was going to be "tough" for Bitcoin to reach that level, and that when you look at trade/investor sentiment, for example on Twitter, it looks "pretty nasty out there." 

According to CryptoCompare, at press time, Bitcoin is trading at $6,113.28, down 0.25% in the last 24-hour period.

You can watch a full video of this segment of Fast Money on the CNBC website.

 

Featured Image Credit: "Bitcoin" by "Hektor Ehring Jeppesen" via Flickr; licensed under "CC BY 2.0"

Bitcoin Is ‘Worthless’ Says John McAfee After Predicting It Would Hit $1 Million

Francisco Memoria

Eccentric cybersecurity entrepreneur John McAfee has bashed bitcoin claiming the flagship cryptocurrency is “worthless,” even though he had predicted it would reach $1 million by the end of this year, before calling off his prediction.

On social media, McAfee responded to a user who said he believes the cybersecurity expert was only followed because of his bitcoin price prediction, to which McAfee responded bitcoin is “worthless.”

In response various users criticized McAfee for past predictions he got wrong – including for various altcoins – while others tried to defend BTC has value. McAfee is well-known in the cryptocurrency space for a famous $1 million bitcoin price prediction.

On social media, the eccentric entrepreneur initially claimed, in July 2017,  the price of one bitcoin would be above $500,000 by the end of 2020. In November ,when the price of bitcoin was moving toward its $20,00 all-time high by December 2017, McAfee said he predicted the $500,000 mark based on “a model that predicted $5,000 at the end of 2017.”

As such, he revised his prediction to say BTC would hit $1 million by the end of 2020. I January of this year, after the cryptocurrency endured an year-long bear market and subsequently failed to recover to its previous all-time high, McAfee claimed the prediction was a “ruse to onboard new users” and dropped the prediction.

In a tweet revealing the “ruse” McAfee claimed bitcoin is “ancient technology” as newer blockchains have “privacy, smart contracts, distributed apps and more.” McAfee would later on criticized the flagship cryptocurrency, calling it “old” and “clunky.” Per his words, bitcoin is the “Hotmail of crypto.”

Notably billionaire Chamath Palihapitiya, the CEO of Social Capital, has recently argued that the price of bitcoin may increase significantly over the next decade to reach $1 billion per coin.

Featured image via Unsplash.