Bitcoin (BTC) HODLers who are less concerned about the leading cryptocurrency's gradual price decline may be becoming worried after reading what Jim Cramer may have hinted about the coin's status.
Could BTC be the subject of Jim Cramer's post?
For a long time, the “Mad Money” host had nothing positive to say about Bitcoin other than criticizing the coin. Now comes his latest cryptic “overbought” statement as Bitcoin records seven consecutive months on the positive side of the chart for the first time since 2012, closing a monthly candle above the previous cycle’s high.
Bitcoin is just The trading price is $68,391.81 with a drop of 2.95% in the last 24 hours. This market price is a far cry from where the coin was in mid-March, when the leading cryptocurrency by market cap had previously risen as high as $73,000. There is even speculation from analysts that the Price of Bitcoin could fall further to $63,000.
With the price around 10% below the all-time high (ATH), Cramer may be suggesting that it is now better to be a BTC seller than a buyer. He stated that the market is currently “more overbought” than it has been in a long time.
Many crypto enthusiasts are still trying to decipher whether this is just another April Fool's joke or one of Cramer's contrarian indicators.
Bitcoin growth mirrors stock indices
Of note, Bespoke Investment Group recently discussed the occurrence of overbought signals across all index-based exchange-traded funds in the United States.
A clear example is the S&P 500 index, which tracks the performance of large companies listed on US stock exchanges. This index recorded another high of the year, taking it to 5,250. That means it's up 22% in the last six months alone.
Despite reaching its highest overbought level since December 2020, the benchmark index continued to rise. With the Introducing Spot Bitcoin ETFs, BTC broke its long-standing correlation with tech stocks last year. Therefore, there is a very high tendency that the largest cryptocurrency is more inclined to track the major stock market indices.
This also means that a stock market correction is unlikely to have a positive impact on the largest cryptocurrency.
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