CNBC’s Jim Cramer said on Wednesday that bitcoin could experience a rally over the next few months, although it could be years before it hits its old highs.
“The charts, as interpreted by Tom DeMark, suggest that bitcoin could have a good rally lower over the next few months, even if he doesn’t see it seeing its former highs again for years, if not decades,” he said.
“I can’t agree to buy crypto here, but if you still own some and want to get out, I bet if you’re another dip, you might get a better price to get out,” he said. he added. .
The cryptocurrency market had a tough year as investors spooked by inflation and Federal Reserve interest rate hikes sold off their assets, causing the crypto market to slow. Bitcoin, the world’s largest cryptocurrency, has fallen far from its highs achieved last November, with some predicting it will plunge even further.
According to the “Mad Money” host, DeMark has a 13-step buy and sell countdown timer that helps him identify bitcoin’s highs and lows. A number of sessions go in the same direction and eventually the buying or selling runs out, he says.
In his breakdown of DeMark’s analysis, Cramer looked at Bitcoin’s daily chart from April of last year to today. Here is the graph:
Cramer said a notable aspect of the chart is that bitcoin has never had a retracement down more than 50% on a closing basis since 2020 – until a few months ago.
“According to DeMark, when you get such an ugly decline…it often causes damage to the asset in question,” he said. “If you think long term, DeMark says it could take many years for bitcoin to approach its former highs, maybe even decades. We may never see them again,” he added.
However, that doesn’t mean bitcoin can’t rebound, according to Cramer.
For more analysis, watch Cramer’s full explanation video below.