Fundstrat’s Robert Sluymer sees a long-term recovery for cryptocurrencies in the world. The strategist earlier called out the Bitcoin Crash but now suggests that the currency is making progress. He also noted that the rally through the $6,000 resistance could show up later in the year.
Investors Should Buy More
According to Sluymer, the largest cryptocurrency in the world is in the middle of a long term sustained recovery. He said that the investors must use the recent weakness in price as an opportunity and buy more. Note that Bitcoin is trading at its highest level in November. After showing some resilience in the first quarter of the year, the currency has finally started to move up.
In a May 2 note, Sluymer wrote:
“Use pending pullbacks to continue accumulating Bitcoin in the second quarter in anticipation of a second-half rally through ~6,000 resistance.”
He also said that Bitcoin would rebound from the 200-week moving average and then break out from its first-quarter trading range. He sees this as “the early stage of a longer-term recovery developing.”
Alongside Bitcoin, several other digital currencies have finally started to show some bullish signs. The overall optimism towards the industry was fueled last Friday when a new report in the Wall Street Journal about social networking behemoth Facebook Inc. The company is reportedly looking to partner with financial companies and e-commerce firms to launch a cryptocurrency-initiative.
Sluymer Flips on Last Year’s Warnings
In November last year, Sluymer warned that the asset had suffered considerable technical damage. He said that it would take months for the damage to repair. Bitcoin was then trading at $5,500 but went down to $3,136.04 in subsequent weeks. Bitcoin couldn’t hit back at $5,000 until April this year.
Fundstrat is one of the early movers in cryptocurrencies and their co-founder Tom Lee has been a staunch Bitcoin bull. Though his predictions for Bitcoin to move up to $25,000 by the end of 2018 didn’t hold true, he sees 2019 as the year that will build better risk-reward in the markets. Sluymer, meanwhile, said in his note that traders and investors should remain focused on the bullish long-term technical profile and accumulate more.