CNBC’s Jim Cramer on Wednesday suggested bitcoin might enjoy a resurgence in the forthcoming months, however it could be several years before it hits its former peaks.
Cramer stated “Even while Tom DeMark does not see bitcoin returning to its previous peaks for tens of years, the charts indicate that it may have a good relief rebound over the forthcoming few months. This is the interpretation that Tom DeMark gave after looking at them.”
He further stated “I can’t recommend purchasing cryptocurrency at this point, but if you already have any and you want to sell it, I think you may receive a better price to sell it if there is another decrease in the price before it recovers from this one.”
The market for cryptocurrencies has had a difficult year as a result of investors selling off their assets in response to fears of inflation and interest rate rises from the Federal Reserve. This led to a downward trend in the cryptocurrency market. Bitcoin, the most widely used cryptocurrency, has seen its value plummet significantly from the highs it hit in November of last year, and some analysts forecast that it will go considerably more.
The presenter of “Mad Money” claims that DeMark has a 13-step buy and sell countdown that assists him in determining the highest and lowest points in the price of bitcoin. According to what he mentioned, once a given number of sessions have gone in the same way, the buying or selling would finally exhaust itself.
Cramer analyzed the daily chart of Bitcoin’s price from April of the previous year up to the present day as part of his breakdown of DeMark’s findings. The price chart is provided below:
According to Cramer, one of the most noteworthy aspects of the chart is the fact that bitcoin has never experienced a downward retracement of more than 50 percent on a closing basis since the year 2020 — that is, up until a few months ago.
He stated “As per DeMark, when you have a downturn that is this severe… it will almost always cause structural damage to the asset that is in concern. If you take a more long-term perspective, DeMark predicts that it will be several years, or even decades, before bitcoin returns anywhere near its previous highs. It’s conceivable that we won’t run across them ever again.”
Cramer believes that despite this fact, there is still a chance that bitcoin may stage a comeback.