Jim Cramer recommends Bitcoin and gold as smart hedges amid rising concerns over U.S. debt and excessive government borrowing.
Bitcoin nears the $108K resistance after a strong 37% rally from March lows, but bearish indicators suggest caution is necessary.
Despite mixed signals, Bitcoin's volume and price structure remain strong, yet failure to break out may trigger a $90K pullback.
CNBC's Jim Cramer has urged investors not to panic following Moody's downgrade of U.S. debt. He pointed to the identical situation in 2011 and 2023, which led to brief market sell-offs but not long-term damage. Cramer pointed out that panic selling is more often a function of fear, not fundamentals.
He suggested using fear as a tool—not a trigger—for making smarter investment choices. Notably, he recommended gold and Bitcoin as strategic hedges against excessive government borrowing. As the market digests Moody’s warning, Cramer believes it presents a buying opportunity, not a signal to exit.
Bitcoin Nears Upper Range Amid Mixed Signals
Bitcoin consolidated below the $108,000 resistance. It is now at $105,796 after posting a modest 0.17% gain. The recent rally from the March low of $77,000 has boosted the price of BTC by 37%. This rally has a solid technical setup backed by rising volume and momentum.
Moreover, Bitcoin has maintained a wide trading range between $75,000 and $108,000 for the past six months. This range has created a reliable technical framework. Key horizontal levels have emerged at $75,000, $90,000, and $108,000. The upper boundary now acts as a critical resistance.
Source: Ali
However, the current chart displays cautionary signals. A hanging man candlestick pattern and bearish RSI divergence suggest stalling momentum. Additionally, the MACD has formed a bearish crossover, often a precursor to pullbacks.
Momentum Slows as Traders Monitor Resistance
Despite the warning signs, Bitcoin’s recent push above $100,000 shows resilience. April and May saw elevated trading volumes, indicating sustained market interest. The cumulative volume flow highlights bullish confirmations at critical breakout points.
Besides, short-term consolidation just below February’s high reflects healthy market digestion. The momentum indicator has moved from oversold in March to near-overbought now. However, its leveling pattern suggests buying strength may be waning.
Consequently, traders should stay cautious as Bitcoin approaches the $108,000 ceiling. Failure to break through may prompt a pullback toward $90,000. Conversely, a confirmed breakout above resistance could set the stage for new all-time highs.
The post Cramer Endorses Bitcoin as BTC Hits Resistance Wall appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
