"Mad Money" host Jim Cramer says there's reason to believe the large-scale crypto sell-off may be coming to an end soon.
What Happened: Basing his views on technical analyst Tom DeMark, Cramer said on Monday both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) could be looking at downside trend exhaustion bottoms this week.
“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,” said Cramer.
The final leg down, however, could see Bitcoin drop below $27,000 according to DeMark’s recent estimations.
Bitcoin is currently at No. 11 of DeMark’s “13-session countdown pattern” used to identify when a rally or decline will be exhausted.
“We need two more negative closes before his buy trigger fires. DeMark wouldn’t be surprised to see bitcoin getting hit with a two- or three-day panic selling climax, which could briefly take it all the way down to 26,355,” explained Cramer.
On the other hand, Ethereum has already hit 13 on the buy countdown for the first time since the peak which reportedly indicates a “trend exhaustion bottom.”
“If we get another panicked breakdown, he could see [ETH] 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,” said Cramer.
Price Action: As of Tuesday morning, Bitcoin was trading at $36,400, up 5.4% in the last 24 hours. Ethereum was trading at $2,400, up 3.69% over the same period.
Photo by Pierre Borthiry on Unsplash
