Crypto pessimist Jim Cramer has been left with an egg on his face following the price of bitcoin (BTC) increasing by at least 14% a couple of weeks after he urged investors to sell their coins when the cryptocurrency was trading around the $24,000 level.
Jim Cramer, who hosts CNBC’s “Mad Money,” said two weeks ago that he would sell his bitcoins, claiming the cryptocurrency was “being manipulated.” At the time Cramer commented, BTC had registered a significant uptick week-on-week following the failure of several large banks.
Inverse Cramer effect
Cramer, who co-founded Thestreet.com, a website dedicated to financial news and education, responded to a caller on the show who wanted to know whether the “continuing distrust” in the traditional banking system had “strengthened the investment case for bitcoin.”
However, Cramer responded by calling BTC a “strange animal.” He suggested that its price had been historically manipulated by disgraced FTX CEO Sam Bankman-Fried.
The former hedge fund manager has become a joke figure within crypto circles. Several social media users see his BTC selling recommendation as a buy signal, noting his track record of bad advice.
BTC technical analysis
True to form, all of BTC’s technical indicators are currently overwhelmingly bullish. The coin’s price chart over the past three months shows that BTC has been in an uptrend since mid-January 2023.
Its price has been moving in a channel, creating higher highs and lows, indicating a bullish trend.
All the moving averages (MAs) except the 5-day MA also indicate a strong buy signal. The volume of bitcoin has been relatively high in the last few months, indicating growing buying pressure.
BTC/USD 4-hour chart | Source: Tradingview
BTC’s momentum indicator, the Relative Strength Index (RSI), has oscillated between overbought and neutral zones but is currently hovering around the 64 levels, indicating a buy signal.
However, since BTC’s RSI has been in the overbought territory for quite a while, there’s a possibility it may face correction. In case of a market correction, the price of BTC may correct up to the support level of $25,000 before continuing its bullish move.
In the last few days, BTC had breached the $28,000 level before temporarily dropping below $27,000, according to CoinMarketCap. But it has since recovered most of what it lost and was trading at $27,799 at the time of writing. The current price indicates a 1.01% gain in the last 24 hours, where BTC also recorded a trading volume of $14,8 billion.