Bitcoin fell to $32,982.11 per token earlier Monday, its lowest level since July, according to Coin Metrics. However, bitcoin reversed course during the trading day, eventually reaching around $36,000. The cryptocurrency is still well below its all-time high of nearly $69,000, which came in the fall.
Ether fell to its lowest level since July on Monday, falling as low as $2,176.41 before recovering some losses. It’s down roughly 50% from its all-time high. At the same time, there is a risk that bitcoin’s steep decline in recent weeks will cause structural damage to the cryptocurrency. DeMark is betting that this will not happen — just as bitcoin’s roughly 56% drop from April to June 2021 did not prevent it from setting new highs in the fall.
Indeed, according to Cramer, DeMark observes that bitcoin’s current angle of descent is identical to its 2021 plunge. In other words, history has a high probability of repeating itself.
Cramer pointed out that bitcoin is currently at No. 11 on DeMark’s well-known 13-session countdown pattern, which the technician uses to determine when a rally or decline will be exhausted.
If Monday’s intraday only results in a brief rally, DeMark wouldn’t be surprised to see bitcoin hit with a two- or three-day panic selling climax, which could briefly take it all the way down to 26,355.
Since the peak’s first time, Ether has reached 13 on his buy countdown. That tells DeMark that we may be approaching a trend exhaustion bottom, Cramer said, noting that Ether also fell below DeMark’s downside price projection of $2,434.
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