Above $37,000, bitcoin price is showing signs of improvement. BTC even jumped past $38.00 and is now looking for a breakout on the upside. The bulls are trying to calm the market mid-week after prices fell to a six-month low on Monday.
Renowned CNBC anchor Jim Cramer quoted the analysis of experienced expert Tom DeMark and predicted that the current ongoing sell-off in the world’s two major cryptocurrencies may be coming to an end.
Bitcoin fell to $32,982.11 per token on Monday, its lowest level since July. BTC, on the other hand, reversed direction and surged to over $36,000 during the trading day. The cryptocurrency is still far from its all-time high of around $69,000, which it reached in November last year.
The second-largest cryptocurrency Ether also fell to its lowest level since July on Monday, hitting $2,176.41 before recovering some of its losses. That’s nearly half of what it was at its all-time high. This comes at a lower than normal price.
While there is a risk that bitcoin’s current rapid decline will cause it real harm, Cramer thinks DeMark is betting that won’t happen, just as bitcoin’s roughly 56% drop from April to June 2021 does. did not prevent it from reaching new heights in the fall. .
According to Cramer, bitcoin is now ranked 11th on DeMark’s well-known 13-session countdown model, which the expert uses to gauge whether a rally or meltdown is over.
“If Monday afternoon’s reversal is just a transient bounce,” Cramer said, “DeMark wouldn’t be surprised to see bitcoin hit a two- or three-day panic selling high, which could bring it down to 26,355.”
He said that before his buy trigger activates, DeMark needs two more negative closes, adding that DeMark wants bitcoin to test his price target on the downside.
Factors influencing the price of BTC
While there are various technical metrics and charts to gauge the price of Bitcoin, the cryptocurrency’s growing co-relationship with the S&P500 index is one to watch. The price of crypto is also influenced by macroeconomic factors such as rising interest rates and the increasing ferocity of the Fed.
Another important factor to consider is Bitcoin Dominance, which reached its current range after the bitcoin crisis of 2017-18. The chart indicates that we are extremely close to the bottom. For a Bitcoin price of $100,000, regaining 50% dominance would be critical.