As the stock market braces for a potential pullback, with CNBC’s Jim Cramer pointing to overvalued tech stocks and artificial intelligence ventures, the impact on cryptocurrency markets, particularly Bitcoin price prediction, becomes a focal point of interest.
Cramer’s commentary follows a downtrend in major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, which slipped by over 0.50% recently. This environment of uncertainty is reflected in Bitcoin’s current performance, trading around $42,600, down over 1%.
Jim Cramer Says Stock Market is Ready for a ‘Pullback’
Jim Cramer, a well-known financial commentator, has raised concerns about how quickly technology stocks are rising without good reason. He points out that many companies, especially those in software and data analysis, are seeing their stock prices go up just because market analysts keep raising their expectations, not because the companies are actually doing better.
Cramer believes that the stock market needs to adjust and come back to more realistic levels unless there’s actual news that supports such high stock prices. He’s also skeptical about companies claiming big future successes with artificial intelligence.
JUST IN : JIM CRAMER SAYS THE STOCK MARKET IS READY FOR A PULLBACK
— GURGAVIN (@gurgavin) January 17, 2024
Furthermore, Cramer links the recent overall increase in stock prices to the U.S. Federal Reserve’s decision to stop raising interest rates. Some people thought this meant interest rates would soon be cut, but Cramer warns that inflation is still a problem. He also points out that rising oil prices are making things more expensive, which goes against the Federal Reserve’s aim to keep prices stable.
He does mention that some parts of the market, like financial and health-care stocks, are not going up as fast and seem to be balancing out. This situation in the stock market could also affect Bitcoin’s price, particularly now when the market might be adjusting itself and is influenced by decisions made by the Federal Reserve.
Next, let’s explore a forecast for Bitcoin’s price and take a closer look at its technical analysis.
Bitcoin Price Prediction
Bitcoin (BTCUSD) is currently maintaining stability around $42,600. Its pivot point is at $43,220, with the first level of resistance at $44,384. Additional resistance levels are at $45,260 and $47,060. On the support side, Bitcoin finds initial support at $41,472, with further levels at $40,570 and $39,424.
Technically, the Relative Strength Index (RSI) is near 45, indicating a neutral to slightly bearish market sentiment. The 50-Day Exponential Moving Average (EMA) is positioned at 43,641, reinforcing a cautious outlook for the market.
Bitcoin’s current chart pattern indicates a range-bound session, with prices oscillating between $43,250 and $41,470. This movement suggests uncertainty, as Bitcoin has yet to establish a strong directional trend.
Bitcoin Price Chart – Source: Tradingview
Summarizing, Bitcoin’s trend appears bearish as long as it remains below the $43,220 pivot. A movement above this pivot could change market sentiment.
In the short term, it seems likely that Bitcoin will challenge its lower support levels unless it breaks above its immediate resistance, which would shift the current bearish perspective.
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