Investors feared by the Federal Reserve’s rise in interest rates and inflation have put off mass selling of assets, which has contributed to the downturn in the cryptocurrency market. The year has been tough for the cryptocurrency industry.
The world’s largest cryptocurrency, bitcoin, has fallen significantly from its November 2018 highs, and some experts believe it will continue to drop.
Bitcoin Relief Rally on the Horizon
A CNBC personality named Jim Cramer has made a favorable prediction about bitcoin (BTC), stating that the top asset class will experience a surge in value in the coming months.
By examining the graphic provided by Tom Demark, Cramer came to the conclusion that bitcoin will have a catharsis in the near future and rise above the level at which it is currently trading.
Given the fact that Cramer doesn’t expect bitcoin to hit its former high of more than $69,000 in the near future, he is optimistic that “nice relief” is coming for BTC investors in the coming months. .
“I can’t contemplate getting cryptocurrency right now, but if you still have some and want to trade, I’m guessing that from here on out, if someone else dives in, a better price to sell you.” can be found,” said Cramer.,
More BTC analysis from Cramer
The host of CNBC’s Mad Money commented that DeMark, the founder and CEO of DeMARK Analytics, has built a 13-step buy-sell countdown over the years that allows them to track the tops and bottoms of the biggest cryptocurrencies. Enables determination.
The most recent graphic from DeMark was broken down by Cramer, who also looked at bitcoin’s performance since April 2022.
According to the CNBC host, many of DMark’s chart patterns move in parallel directions before ending each other at buy and sell ends.
Upon further investigation, Cramer discovered an important feature in the graph, which shows that Bitcoin has never dropped by 50% since 2020 due to the demise of the Terra Ecosystem token and increased inflation.
“When such a severe downturn occurs, assets usually experience structural damage. If you are looking at the longer term, you should know that it may take decades, or possibly many years, for bitcoin to reach its former highs. We could lose track of them forever,” Kramer said.
Cramer has long been a proponent of bitcoin and encouraged people to participate in the asset class. A CNBC host suggested investing in bitcoin to an American who won the $731 million lottery last year.
Bitcoin is rejected by Cramer in the last ATH
Since the creation of the asset class, bitcoin has experienced a significant downtrend. The cryptocurrency fell from around $46,000 at the beginning of the year to $20,000.
While there are many reasons for the sharp drop in BTC, investors expect the asset class to rise to its previous all-time high (ATH) of $69,047. However, Cramer doesn’t believe it will happen anytime soon.