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Jim Cramer says bull market may return soon but full recovery for Bitcoin years off

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CNBC crazy money host Jim Cramer said there could be short bullish sentiment in the coming months if six things happen.

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In any case, bullish sentiment will not be enough for Bitcoin to reach or surpass its old highs, and it could take years to get back on its feet.

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Cramer analyzed the current charts and suggested that investors wait until the possible bull run stops. He said:

“Graphics […] suggest that Bitcoin could have a good rally over the next few months, even if it doesn’t see it return to its old highs for years or even decades.

I can’t endorse buying crypto here, but if you still have some and want to get out, I bet you can get a better exit price out of this if you fall again.”

Six Signs of a Bull Run

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Investors can tell if a temporary bull market is approaching by looking for six signs, Cramer said.

Here is Kramer’s list of things to happen, not necessarily in that order:

  1. Oil prices should stabilize at a level that is beneficial to producers and the public.
  2. Rising food prices must be stopped.
  3. The unemployment rate should reach 5% within a few quarters. Thus, demand will be limited, and the economy will have the opportunity to fight inflation.
  4. Speculative trading should be kept to a minimum.
  5. Large companies must merge with smaller, “cheaper” new firms.
  6. And most importantly, the rise-fall line should improve. Kramer emphasizes the importance of this by saying:

“This is a very important metric that measures the overall breadth of the market—how many stocks are up and how many are down. When you see it growing steadily, that’s a sure sign of a run.”

When all these conditions are sufficient, bearish investors will appear and interest rates will fall, creating an uptrend in the market.

Bitcoin will take years to heal

Kramer turned Demark 13 step indicators in his bitcoin analysis and said that bitcoin is unlikely to recover to its old highs immediately.

BTC chart from Mad Money

After falling more than 50% at the close, bitcoin suffered its sharpest drop since 2020. Cramer quoted Demark and said that such a sharp drop causes structural damage to the asset, which is difficult to cure.

He said:

“If you think long term, Demark says it could take many years for Bitcoin to get close to its old highs, maybe even decades. We may never see them again.”

Cramer said DeMark is right, but that doesn’t mean Bitcoin can’t bounce back.





Credit : cryptoslate.com

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