Crypto Gems

Jim Cramer: Charts suggest history may repeat itself for bitcoin after steep decline


Join Daily Airdrop



Charts suggest there is a decent chance history repeats itself for bitcoin and the cryptocurrency shakes off its recent steep drawdown to mount another rally, CNBC’s Jim Cramer said, based on technical analysis from Tom DeMark. Sign up and learn more about the CNBC Investing Club with Jim Cramer https://cnb.cx/3Ei22n4

Charts suggest the selling in the world’s two largest cryptocurrencies may run its course soon, CNBC’s Jim Cramer said Monday, leaning on analysis from veteran technician Tom DeMark.

“When the charts, as interpreted by Tom DeMark, say that both bitcoin and ethereum could be looking at downside trend exhaustion bottoms this week, if not today, I think you need to take him seriously,” the “Mad Money” host said.

“To me, that says it might be too late to sell and you need to consider buying. I know I am, especially if we get a final leg down,” added Cramer, who personally owns some ether, which runs on the ethereum blockchain. He previously owned bitcoin, as well.

Bitcoin earlier Monday reached its lowest point since July when it fell to $32,982.11 per token, according to Coin Metrics. However, bitcoin reversed course during the trading day, ultimately moving higher to around $36,000. The cryptocurrency remains well off its all-time high of nearly $69,000 reached in the fall.


Join Daily Airdrop

Ether also touched its lowest level since July on Monday, falling as low as $2,176.41 before paring some of those losses, according to Coin Metrics. It’s down about 50% from its all-time high.

Bitcoin

While there’s a risk that bitcoin’s steep decline in recent weeks could cause structural damage to the cryptocurrency, Cramer said DeMark is betting that will not happen — just like bitcoin’s roughly 56% drawdown from April to June 2021 didn’t prevent it from setting new highs in the fall.

In fact, DeMark notes that bitcoin’s current angle of descent is identical to its 2021 plunge, Cramer said. “In other words, there’s a good chance that history continues to repeat itself.”

Looking specifically at bitcoin’s recent trading, Cramer said the cryptocurrency is at No. 11 of DeMark’s well-known 13-session countdown pattern, which the technician uses to identify when a rally or decline will be exhausted.

“We need two more negative closes before his buy trigger fires,” said Cramer, who added that DeMark also would like to see bitcoin test his downside price targets.

If Monday’s intraday turnaround ends up leading to only a brief rally, “DeMark wouldn’t be surprised to see bitcoin getting hit with a two- or three-day panic selling climax, which could briefly take it all the way down to 26,355,” Cramer said.

Ether

Ether “has already hit 13 on his buy countdown for the first time since the peak. That tells DeMark that we could be looking at a trend exhaustion bottom,” Cramer said, noting that “fortunately” ether also fell beneath DeMark’s downside price projection of $2,434.

Despite these positive technical indications, DeMark cautions that ether may still fall further. “If we get another panicked breakdown, he could see [ether] temporarily dipping to $1,859 in a selling climax, but that would be your moment to buy, not sell, into the teeth of the panic,” Cramer said.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast 
 
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV

source

Related Articles

28 Comments

  1. Exceedingly awesome and super great video. When market conditions are negative, there are endless opportunities and very little time for studies, what advantage of the current conditions in the crypto market should be advised?

  2. If only you know what the future says, you'll know that indeed cryptocurrency is the future, investing in it now will be the wisest thing to do And you"ll thank yourself at the end.

  3. i feel those who would allow the market
    dynamism to determine when to trade or not are
    either new in space in general or probably just
    naive, the sphere have seen far worse times than
    this, enlightened traders continue to make good
    use of the dip and pump even acquiring more
    equities towards trading sessions, l'd say that
    more emphasis should be put into trading since
    it is way profitable than hodling. Trading went
    smooth for me as I was able to raise over 9.2
    BTC when l started at 1.5 BTC in just few weeks
    implementing trades with signals and insights I would advise you all to trade
    your asset rather than holding for a future you aren't
    sure about.

  4. The market crashing is not the most fearsome part of the market. being able to buy stocks that are really going to pump well is the goal. Not all stock bought at dip are going to rise and in worst scenario it might dip more and you are left loss.

  5. 👋Hello Mrs Violet is legit and her method works like magic I keep on earning every single week with her new strategy

  6. When it seems like all is fallen and blood is in the streets. That is when you buy.💎💎✊🏼

  7. With the helped I got from 
    intellect webs I'm finance ok all thanks to this service for helping

  8. With the helped I got from 
    intellect webs I'm finance ok all thanks to this service for helping

  9. Just look at the cycle from 2011-13.. Chart looks as same as then. I dont belive that it's over of this cycle.. BTC made ONLY 1700% in this cycle so it's really low percentage and that is why I belive that we gonna make another 1700% or even more 🙂

  10. the triangles are exactly the same but they dont fit the pattern the same way lmao…i see this as cramer telling people to wait for a further dip and then get screwed by the rocketship

  11. market manipulation, when this idiot says BUY – I go short, when he says SELL I go Long, and it always work out positively

  12. This is guy is with evil you can tell with his face
    Crypto is taking over soon trust me

Back to top button