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Thursday, May 31, 2018

It's settled - $7000 established as Bitcoin's "bottom" - now, time prepare for the breakout?

Proven multiple times within the last few months - Bitcoin's key support level over and over seems to land around $7000.  Every time it's touched around that number - the bounce back begins. analysts are agreeing with this outlook at well. 

Speaking today on "Futures Now", Robert Sluymer, head of technical strategy at Fundstrat Global Advisors said:

"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" he continued "That's certainly the first step in a bottoming process, to see some sort of consolidation or a basing taking hold".

Finding the 'bottom' or 'floor' price of something is vital to know before investing more - especially large amounts. Investors will often even wait on the sidelines until they know this number, rather than risk investing to find the bottom even lower.

The market reaching general consensus on Bitcoin's bottom price being approximately $7000 means that making the case that Bitcoin is "over valued" becomes a lot harder to make - in fact, sitting at $7,524 (at time of publishing) means that Bitcoin is barely up - something that investors could see as a signal to buy.

Sluymer now see's $7800 as "the next hurdle for it to get through."

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Author: Adam Lee
Asia News Desk