CNBC’s Jim Kramer advises investors looking for entry and exit points to keep a close eye on trades in both stocks and crypto in the coming weeks.
The Mad Money host on Friday reviewed the charting analysis done by Tom DeMark, founder and head of DeMark Analytics.
“Tom DeMark’s interpretation of the charts suggests that Bitcoin may take another month to bottom, while the S&P 500 may peak as early as next week,” he said. “Given Tom’s track record, this is a good reason to be patient with bitcoin and be a little wary of the S&P.”
DeMark invented the DeMark indicator, which some traders use to measure time in the market. According to Cramer, a methodology that follows patterns to predict changes in a trend is popular among crypto traders for identifying highs and lows.
Kramer reviewed daily Bitcoin charts, which peaked at around $ 65,000 in mid-April. The digital coin is now trading above $ 37,300 as of Friday after falling to $ 30,000 in mid-May.
DeMark, who said the fall in bitcoins was reminiscent of the 1987 crash, predicted that the fall could push the token’s value to a low of $ 32,000 – or $ 24,000 in the worst case. He now believes bitcoin as a whole will hold above the May 19 low, Kramer said.
On the so-called Black Monday, the Dow Jones Industrial Average fell more than 20% on October 19, 1987. This was a reflection of the 36% decline in the blue-chip index since August of that year.
“If DeMark is right, you may have a chance to buy bitcoin in the not too distant future, and I’ll take it,” Kramer said. “I think this 87 analogy is good news. The stock market bounced back quickly after the 1987 crash. ”
As for the S&P 500, which closed at a record high for the second day in a row, the DeMark indicator suggests the index could be close to a top, Kramer said. DeMark’s price target is $ 4335 and $ 4344, about 2% higher than Friday.