Jim Cramer says bull market may return soon but full recovery for Bitcoin years off

Jim Cramer says bull market may return soon but full recovery for Bitcoin years off

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CNBC鈥檚 Mad Money host Jim Cramer said a short bull sentiment might arise in the coming months if six things happen.

Regardless, the bull sentiment won鈥檛 be enough for Bitcoin to reach or exceed its old highs, and it could take years to get back on its feet.

Cramer analyzed the current charts and suggested investors wait for the possible bull run to exit. He said:

鈥淭he charts [鈥 suggest that bitcoin could have a nice relief rally over the next few months, even if he doesn鈥檛 see it revisiting its old highs for years or even decades.

I can鈥檛 countenance buying crypto here, but if you still own some and you want out, I鈥檓 betting that from this, if you鈥檙e another dip down, you might get a better price to get out.鈥

The six signs of bull run

According to Cramer, investors can tell if a temporary bull market is coming by keeping an eye on the six signs.

Here is Cramer鈥檚 list of things that need to happen, not necessarily in this order:

  1. Oil prices must stabilize at a level that favors producers and the public.
  2. The increase in the food price has to stop.
  3. Unemployment rates should reach 5% for a few quarters. This way, the demand will be constricted, and the economy will have room to fight inflation.
  4. Speculative trading has to be minimized.
  5. Major companies should merge with smaller, 鈥渏unkier鈥 new firms
  6. And most importantly, the advance-decline line must improve. Cramer stresses the importance of this by saying:

鈥淭his is an all-important gauge that measures the overall breadth of the market 鈥 how many stocks are going up versus down. When you see it going steadily higher, that鈥檚 a solid precursor to a run,鈥

When all these conditions suffice, the bearish investors will emerge, and interest rates will drop, creating an upwards trend in the market.

Bitcoin will take years to heal

Cramer addressed DeMark鈥檚 13-step-indicators in his Bitcoin analysis and said Bitcoin is not likely to heal back to its old highs immediately.

BTC Chart from Mad Money

By falling more than 50% on a closing basis, Bitcoin had its sharpest fall since 2020. Cramer cited DeMark and said this kind of steep decline causes structural damage to the asset, which is difficult to heal.

He said:

鈥淚f you鈥檙e thinking long-term, DeMark says that it could take many years for bitcoin to come near its old highs, maybe even decades. It鈥檚 possible we鈥檒l never see them again,鈥

Cramer said DeMark has a point, but that does not mean Bitcoin can鈥檛 bounce back.

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