CNBC’s Jim Cramer showed on Monday that sales in two of the world’s largest cryptocurrencies could soon be on track, based on analysis by veteran engineer Tom Demark.
“When the charts interpreted by Tom Demark say that both Bitcoin and Ethereum could see the bottom of the downtrend depletion this week, we need to take him seriously, if not today. I think, “said the host of” Mad Money. “
“For me, it may be too late to sell, so I should consider buying it, especially if we make the last step,” Ethereum said. Cramer, who personally owns the ether that runs on the blockchain, added. He had previously owned Bitcoin.
Bitcoin at the beginning of Monday reached its lowest point since July, dropping to $32,982.11 per token, according to Coin Metrics. However, Bitcoin reversed the course during the trading day and eventually rose to about $36,000. Cryptocurrencies are well below the record highs of nearly $69,000 reached in the fall.
Ether also cut some of these losses after falling to $2,176.41, the lowest level since July on Monday, according to Coin Metrics. It is about 50% lower than the highest ever.
While Bitcoin’s sharp depreciation in recent weeks could cause structural damage to cryptocurrencies, Kramer said Bitcoin’s drawdown of about 56% from April to June 2021 In the fall, DeMark said it was betting that it wouldn’t happen, as it didn’t interfere with the new highs.
Tom DeMark’s technical analysis showing the angle of descent of Bitcoin.
Jim Cramer and Mad Money
In fact, DeMark states that Bitcoin’s current descent angle is the same as the 2021 plunge. “In other words, there is a good chance that history will continue to repeat itself.”
Looking especially at Bitcoin’s recent trading, Cramer said the cryptocurrency is at number 11 of DeMark’s famous 13-session countdown pattern. This is used by technicians to identify when a rally or decrement will run out.
13 session countdown pattern for Tom Demark’s Bitcoin.
Jim Cramer and Mad Money
“We need two more negative closes before his buy trigger fires,” Cramer added, adding that DeMark also wants Bitcoin to test his downside price target.
If Monday’s daytime turnaround ends in a short rally, “It’s no surprise that Bitcoin is hit by a two- or three-day panic selling climax, which can temporarily drop to 26,355. . Kramer said.
A technical analysis of Tom DeMark’s ethers, including two downside price forecasts.
“For the first time since the peak, we have already reached 13 in the purchase countdown, which tells Demark that we can see the bottom of the trend depletion,” Kramer said, “fortunately” Ether. He said it was below the demark’s down price forecast. $2,434.
Despite these positive technical signs, DeMark warns that ether could fall further. “If we got into another panic, he could see [ether] The temporary selling climax dropped to $1,859, which would be the moment to buy rather than sell to panic teeth. “
Sign up now CNBC Investing Club to track every move in Jim Cramer’s market.