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The man who called the bitcoin bottom now sees this

The market watcher who called the bitcoin bounce now sees this

After sinking over 60 percent from its December high to its February low, bitcoin is showing signs of life.

The cryptocurrency is now up about 35 percent since it sank below $6,900 on Feb. 5, and one market watcher who correctly called the rally says there's even more room to run.

After the Feb. 5 low, Blue Line Futures President Bill Baruch told CNBC's "Trading Nation" he saw a move up back up to $10,000. At that time, bitcoin was trading around $7,200. Tuesday morning, bitcoin was trading above $9,200, representing roughly 28 percent upside since that time. Here's his latest bull case.

• Participation in the rally has been broad-based, with several so-called alt-coins gaining in value recently. This is seen as a bullish catalyst for the entire cryptocurrency space.

• Bitcoin has seen a bounce from its 2018 lows even in the face of ongoing regulatory concerns, including a new inquiry from New York Attorney General Eric Schneiderman into exchanges like Gemini and Coinbase's GDAX exchange.

• The $10,000 level has represented strong resistance, but once that level is breached to the upside, Baruch sees a trade around $11,500 per coin.

Bottom line: Baruch sees further upside for bitcoin after a sizable rally from its 2018 lows.