Legendary exchange Jim Cramer spoke at the Squawk Box show to update his predictions about Bitcoin and traditional markets.
Jim Cramer expects Bitcoin price to drop to $12,000
Jim Cramer shared his skepticism about Bitcoin’s reversal and starting to rise. Galaxy Digital’s Mike Novogratz and MicroStrategy CEO Michael Saylor’s appearance on CNBC earlier this week was “a stand-in,” he said.
Jim Cramer comments that the two big investors in Bitcoin “can’t let it go down any longer.” So, they took on the role of people saying that before Bitcoin exploded, a drop was the norm. Finally, Cramer shared that he believes Bitcoin will drop to $12,000, the level “before this whole fiasco started.”
The “Mad Money” host once again stated that Bitcoin is “not really a thing.” At the same time, he mocked Joe Kernen when he said it was a representation of the nascent Blockchain technology. Cramer has said in previous interviews that he believes Bitcoin and Ethereum are the “most legitimate” cryptocurrencies and that people should be allowed to invest in them as long as they don’t see them as risk-free assets.
So what happens if Bitcoin loses $20,000?
Bitcoin has lost 70% of its value since its November ATH level of $68789. Thus, it tried to renew the bullish momentum, testing the $20,000 support. Indicators offer $24,000 or $28,000 rally in an anticipated pullback due to oversold signals.
From mid-May to June, the $28,500 support stopped the market’s continued bathing. However, the resulting consolidation resulted in a bearish note as BTC broke support on June 11.
This support indicates the continuation of the downtrend. BTC dropped another 29.3% after that. The downside momentum broke the critical psychological support at $26000, $24000. It is now testing the $20000 limit lately. Therefore, if the selling continues, Bitcoin could break the $20000 support due to the lack of volume growth.
technical part
The daily RSI slope plunging into the oversold region shows that the crypto crash has over-inflated the selling pressure. Also, BTC price hovering above a key psychological level ($20,000) with an RSI of 23% suggests that investors could witness a bullish rally before the price starts to drop again.
The downtrend between the key DMAs (20, 50, 100 and 200) reflects an overall downtrend. The sudden price drop increased the gap between the price and DMAs, emphasizing aggressive selling. Analyst Brian Bollinger, whose analysis we share with Kriptokoin.com , says that the following technical levels will be critical in the coming days:
- Resistance level: $24000 and $28000
- Support level: $20000 and $18,000
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