Quick take:
- Mad Money’s Jim Cramer is the latest Wall Street Legend to purchase Bitcoin
- Mr. Cramer revealed his decision to own BTC via a Twitter conversation with Tyler Winklevoss
- Bitcoin looks primed for a short-term move up above $11k
- On a Macro level, Bitcoin could be readying for a bigger move up using PlanB’s stock-to-flow model
Mad Money’s Jim Cramer is the latest Wall Street Legend to become a Bitcoiner. Mr. Cramer revealed via twitter that he had bought some Bitcoin for his kids and the BTC was currently held in a trust. He also tipped his hat to Tyler Winklevoss for convincing him to buy Bitcoin through his recent article, via Winklevoss Capital, dubbed ‘The Case for $500k Bitcoin’.
Below is the tweet by Mr. Winklevoss highlighting Jim Cramer’s investment in Bitcoin.
Another Wall Street legend, @jimcramer is long #Bitcoin. Jim, Paul Tudor Jones, and so many other seasoned investors have figured out that it’s your best protection against inflation. Booyah!https://t.co/rUdyZgw7dT
— Tyler Winklevoss (@tylerwinklevoss) September 15, 2020
Mr. Cramer was pointed towards the Bitcoin article by the host of the ‘it’s your Bitcoin’ podcast, KRB, via a tweet that stated the following.
Hey Jimmy Chill! @jimcramer, I Know you’re still thinking #bitcoin & you mentioned @tylerwinklevoss & @winklevoss on the @APompliano podcast. Did you read their latest: The Case for $500K Bitcoin. You should:
Jim Cramer now joins the list of notable Wall Street personalities such as Paul Tudor Jones, who believe in Bitcoin as a store of value and a hedge against inflation.
Time for Bitcoin to Go Up
As Jim Cramer was revealing his ownership of Bitcoin, the author of the stock-to-flow model, PlanB (@100trillionUSD) also took to Twitter to explain that it was time for Bitcoin to go up.
In this instance, PlanB used a 2019 time series model of Bitcoin to point out a clear jump in BTC value after the previous halving in 2016 that could be replicated soon.
Below is his tweet further elaborating on the idea.
S2F version 1 update. This is the 2019 time series model on historical BTC data only (no gold, silver, diamonds, real estate data used). You see the jump in model value at the halving (white line) and corresponding drop in S2F multiple / model error (white dots). Time to go up. pic.twitter.com/qIjiXfbmCx
— PlanB (@100trillionUSD) September 14, 2020
Bitcoin’s Current Price Action
A brief glance at the Daily Bitcoin chart reveals that BTC has shrugged off the late Sunday sell-off that saw its value fall to as low as $10,190 – Binance rate. At the time of writing, Bitcoin is trading slightly above $10,800 after printing a local peak of $10,933.
Also from the daily BTC/USDT, the following can be observed.
- Trade volume is clearly in the green with the daily MACD about to cross in a bullish manner
- MFI is low at 36, hinting of a push up by Bitcoin in the days to follow
- The 50-day moving average (white) provides short term resistance for Bitcoin around $11,200
- Other resistances lie at the $10,900 and $11k area
Conclusion
Summing it up, Jim Cramer has become the latest Wall Street legend to buy Bitcoin. Additionally, and using PlanB’s stock-to-flow model, Bitcoin is primed for a major move up.
However, the daily BTC/USDT chart only hints of a possible brief rally above $11k in the short-term.
As with all analyses of Bitcoin, traders and investors are advised to use stop losses and low leverage when trading BTC on the various derivatives platforms.
