Former hedge fund manager Jim Cramer has revealed that the two largest cryptocurrencies by market capitalization, bitcoin ($BTC) and ether ($ETH) may be close to bottoming out , based on analysis from veteran technician Tom DeMark.<\/p>\n
Cramer, who is the host of CNBC\u2019s show \u201cMad Money w\/ Jim Cramer\u201d and a co-anchor of CNBC\u2019s \u201cSquawk on the Street,\u201d has revealed Tom DeMark\u2019s analysis shows that \u201c both\u00a0bitcoin\u00a0and\u00a0ethereum\u00a0could be looking at downside trend exhaustion bottoms this week, if not today, I think you need to take him seriously.\u201d<\/p>\n
The former hedge fund manager, who personally owns some ETH and has previously owned BTC, added:<\/p>\n
To me, that says it might be too late to sell and you need to consider buying. I know I am, especially if we get a final leg down.<\/p>\n
Looking at DeMark\u2019s analysis, Cramer said that while steep declines such as the one BTC has been seeing over the last few weeks could cause structural damage to the cryptocurrency, DeMark is betting that\u2019s not happening, and pointed to BTC\u2019s 56% drawdown from April to June 2021, which didn\u2019t prevent the cryptocurrency from moving higher in the fall.<\/p>\n
According to the former hedge fund manager, DeMark noted that bitcoin\u2019s current drop is identical to the one seen last year, which to Cramer means \u201cthere\u2019s a good chance that history continues to repeat itself\u201d and BTC moves higher in the near future.<\/p>\n
Cramer added BTC is at no.11 of DeMark\u2019s 13-session countdown pattern, which the technician uses to identify when a rally or decline may become exhausted and reverse. Per Cramer we \u201cneed two more negative closes before his buy trigger fires.\u201d<\/p>\n
Bitcoin is currently trading at around $36,600 after moving up over 10% in the last 24-hour period. The cryptocurrency is down over 29% in the last 30 days, as it was trading above $51,000 a few weeks ago, CryptoCompare data shows.<\/p>\n
If the current rally ends too soon, however, Cramer said DeMark \u201cwouldn\u20190t be surprised\u201d to see a \u201ctwo- or three-day panic selling climax\u201d that could see the price of the flagship cryptocurrency plunge to $26,355.<\/p>\n
As for ether, the cryptocurrency has \u201calready hit 13 on his buy countdown for the first time since the peak,\u201d and ETH has fallen beneath the technician\u2019s downside price projection of $2,434. He added there may still be more downside, however:<\/p>\n
If we get another panicked breakdown, he could see [ether] temporarily dipping to $1,859 in a selling climax, but that would be your moment to buy, not sell, into the teeth of the panic<\/p>\n
As CryptoGlobe reported Michael Bucella, a general partner at cryptocurrency investment firm BlockTower Capital, has revealed he believes bitcoin is still in a \u201clong term bull trend\u201d after analyzing the cryptocurrency\u2019s price action through a logarithmic chart and suggesting BTC\u2019s rise last year wasn\u2019t sustainable.<\/p>\n