• Jim Cramer, host of CNBC’s “Mad Money,” suggested two weeks ago that investors sell their bitcoin, when it was trading around the $24,000 level.
• The price of bitcoin (BTC) has since increased by at least 14%, leaving Cramer with an egg on his face.
• All of BTC’s technical indicators are currently overwhelmingly bullish, indicating a strong buy signal.
Jim Cramer’s Bitcoin Prediction Flops
Jim Cramer, the host of CNBC’s “Mad Money,” has been left with an egg on his face after the price of Bitcoin (BTC) increased 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. Several social media users have noted his track record of bad advice and coined this phenomenon as an inverse Cramer effect.
The Inverse Cramer Effect
Cramer responded to a caller on the show who wanted to know whether the “continuing distrust” in traditional banking had “strengthened the investment case for bitcoin”. However, he called BTC a “strange animal” and suggested its price had been historically manipulated by disgraced FTX CEO Sam Bankman-Fried. Cramer has become a joke figure within crypto circles and his suggestion to sell Bitcoin is seen as a buy signal due to his track record of bad advice.
Bullish Technical Analysis
Bitcoin’s technical indicators are currently all overwhelmingly bullish. The coin’s price chart over the past three months shows that BTC has been in an uptrend since mid-January 2023 and has created higher highs and lows indicating a bullish trend. All MAs except for the 5-day MA also indicate a strong buy signal. Volume in bitcoin has been relatively high in recent months indicating growing buying pressure. Additionally, BTC’s momentum indicator, RSI is hovering around 64 levels which is another indication for buyers entering into positions again.
In conclusion Jim Cramer’s prediction that investors should sell their bitcoins backfired as BTC surged more than 14%. This happened despite all indications pointing towards bearish sentiment when he made those comments two weeks ago. Crypto markets are proving hard to predict so far in 2021 and investors need to be careful about whom they take advice from before entering into any positions in cryptocurrencies or other assets for that matter!
• Jim Cramer advised investors to sell bitcoins; however it increased by 14%.
• The inverse Cramers effect suggests taking opposing advice from him due to his track record of bad advice regarding cryptocurrencies • BTC’s technical analysis indicates an overall bullish sentiment currently • Investors should be careful about who they take advice from before entering into any positions