Bitcoin Must Rally Through $6300 to Reverse Downtrend, Says Fundstrat's Robert Slyumer

"It really is a no-man's land from a trading standpoint. I think if you're a very short-term trader we have a critical stop level at the $5,800-6000 with a resistance level of $6,300-6400. If it can rally through that, I think there's a chance Bitcoin could start to turn."

The 15-day moving average chart is a "Pretty good" proxy for whether the market's trend is positive or negative, Slyumer suggested, and he turned to the 15-day charts spanning back to late 2017.These indicate that crypto markets have been showing progressively higher lows, but Slyumer halted at the $7,000 level on this year's chart, which he says had been a "Very critical support" until now.

With Bitcoin losing this support and failing to break the $7800 resistance on the upside at the time, what we now have are inevitably "Lower highs" and an overall downtrend, with Bitcoin currently trading at below its 15-day MA trendline for late 2017-18.Slyumer said that in the medium term, $5,800-6000 is now the "Absolutely critical" support level for Bitcoin to prevent it from plummeting yet further to the $5000-5500 range.

The downtrend's intact," he added.

"At this point we're just seeing recovery rallies back to the 15-day, back to the downtrend, and it's failing." He conceded that "It's going to be tough" to realize Fundstrat co-founder Tom Lee's prediction that Bitcoin will reach $25,000.

Bitcoin is currently trading at around $6,100, down 9 percent on the week and 15 percent this month.