Bitcoin could experience rally in near term
Jim Cramer, the host of CNBC’s “Mad Money,” said Bitcoin could experience a short-term rally, although it could take years for the coin to hit previous highs. Referring to the charts analyzed by Tom DeMark, he suggested that Bitcoin could have a “good” relief rally over the next few months, although he doesn’t see it seeing its former highs again for years, if not decades.
In his breakdown of DeMark’s findings, Cramer looked at the Bitcoin daily chart from April of last year to the present day. The CNBC host noted that until a few months ago, Bitcoin had not experienced a downward retracement of more than 50% on a closing basis since 2020.
According to DeMark, which has a 13-step buying and selling countdown, steep declines of this magnitude frequently cause structural damage to the asset in question. Cramer says that from a long-term perspective, DeMark asserts that it may take several years, even decades, for Bitcoin to return to its previous highs, or we may never see them again.
But he cautions viewers, saying he does not condone purchasing cryptocurrency now, but investors might get a better price to opt out if they want to sell.
Bitcoin Price Action
Although the reported recovery may be welcomed by investors, Bitcoin is still 70% behind its all-time high, which was set in November. BTC is down 57% since the start of the year.
Despite numerous predictions that the market’s bottom may be near, there remains a great deal of economic uncertainty, and some market observers think that Bitcoin may still have further room for decline.
As previously reported by U.Today, Jim Cramer said on the Squawk Box show that Bitcoin could fall to $12,000, the price “it was at before this whole fiasco started.”
On June 24, the largest cryptocurrency in the world by market cap ticked once again above $21,000, hitting intraday highs of $21,450. According to data from CoinMarketCap, it last increased by 3.12% to $21,187. Bitcoin dropped as low as $17,567 over the previous weekend.
