Speaking with MarketWatch, Rob Sluymer, head of technical research at New York-based Fundstrat Global Advisors, recently claimed that the nascent crypto market may be expressing a number of positive signals, contrary to popular sentiment.
Fundstrat’s Sluymer: There Is A “Silver Lining” Developing In Crypto Markets, Bitcoin Included
In spite of depressed prices, cryptocurrency traders, industry leaders, and commentators from across the globe have been postulating where Bitcoin could move next, as rapidly declining volatility has left many impatient. While most predictions have been nothing more than fluff – not backed by true technical, fundamental, or quantitative analysis – there have been a few diamonds in the rough, if you will, that have struck a chord or two with optimistic BTC investors.
Sluymer explained that there have been a growing number of “Silver Linings” developing in the “crypto universe”, even while prices haven’t budged one bit. BTC, for one, has been wedged in a $100 price range ($6,450-$6,500) for the past 10 days, which is nearly unheard of when it comes to the (not so) volatile cryptocurrency economy.
The prominent analyst, who hasn’t been afraid to express his interest in crypto in the past, elaborated, stated:
While it is still premature to conclude a major upside trend reversal is broadly under way, each week we have highlighted an incremental ‘Silver Lining’ developing within the crypto universe.
With this bullish statement, you may be left asking – so… what are these Silver Linings that Sluymer speaks of?
The Fundstrat technical expert, who is in cahoots with Tom Lee (also of Fundstrat), noted that contrary to what one may assume, declining volatility and low volumes could be seen as “encouraging technical developments.” Moreover, Sluymer explained that there have been a series of positive divergences between many altcoins and larger caps, such as Bitcoin and Ethereum, that are again, “encouraging.”
While the aforementioned technical factors may catalyze bullish sentiment, Sluymer, closing off his comment, pointed out that for Bitcoin to truly break the bull/bear standoff, it will have to surge above September 2018’s highs, which are a tad above $7,200.
Crypto Volatility (Somehow) Continues To Move Relatively Lower
Like other analysts, in the aforementioned statement, Sluymer claimed that dropping volatility in Bitcoin and crypto asset markets could indicate that cryptocurrency values are poised for a rebound (and a strong one at that).
Earlier last week, Ethereum World News reported that Bitcoin’s 20-day historical volatility (HV) had fallen under the HV values of Amazon, Nvidia, and a number of other tech firms, which have all been undergoing a tumultuous price trend as of late.
Now, as revealed by Bloomberg’s Eric Lam and Matt Turner, the volatility disparity between Bitcoin and technology stocks listed on the NYSE has worsened, with the two claiming that the “spread between the 10-day volatility of the NYSE FANG+, which includes Alibaba Group Holding, and that of the digital currency is at a record high.”
While the relationship between Bitcoin and the stock market’s volatility has yet to be researched in-depth, many analysts maintain their thought process that slowing price action in the cryptocurrency space could indicate that values are reaching an inflection point, which may send BTC ‘to the moon’ or into ‘the dumps’.