CNBC’s Jim Cramer said on Wednesday that bitcoin could experience a rally in the next few months, although it could be years before it reaches its old high.
“The charts, as interpreted by Tom Demark, suggest that Bitcoin There could be a nice relief rally in the next few months, even if it doesn’t see it again at its old highs for years or even decades.” They said.
“I can’t buy crypto here, but if you still own some and you want out, I am betting that if you take another dip, you might get a better price to exit, ” he added. ,
The cryptocurrency market has had a rough year as investors panicked over inflation and the Federal Reserve’s hike in interest rates sold off their assets, leading to a slump in the crypto market. Bitcoin, the world’s largest cryptocurrency, has fallen from its all-time high last November, with some prediction It will fall even further.
according to “mad Money“The host, DeMark, has a 13-step buy and sell countdown that helps it identify bitcoin tops and bottoms. A certain number of sessions go in the same direction and eventually the buy or sell itself. ends, he said.
In his analysis of DeMark’s analysis, Cramer examines bitcoin’s daily charts from April last year to the present day. Here is the chart:
Cramer noted that one notable aspect of the chart is that bitcoin hasn’t had a downside retracement of more than 50% since 2020 until a few months ago.
“According to DeMark, when you get this ugly fall… it often results in structural damage to the property concerned,” he said. “If you are thinking about the longer term, it could take years, maybe even decades, for bitcoin to come closer to its old highs,” DeMark says. It is possible that we will never see them again.
However, that doesn’t mean that bitcoin can’t bounce back, according to Cramer.
For more analysis, watch Cramer’s video of the full explanation below.
