Well-known Mad Money host on CNBC Jim Cramer has once again stirred up the crypto community with a short post on X, stating that the market is “very oversold.” Although Cramer did not specify any particular asset, crypto enthusiasts immediately linked this to Bitcoin, which is currently showing notable selling pressure.
Why Cramer’s “very oversold” comment has Bitcoin traders nervous
Within the community, the lore of the “inverse Cramer” has long been established. According to this unofficial half-joke, half-theory, the market often moves in the opposite direction of the host’s statements. Therefore, when Cramer calls an asset oversold, many interpret this as a signal of a deeper downturn ahead.
It is easy to understand why the leading cryptocurrency quickly became part of the discussion following Cramer’s post. First, Bitcoin is currently trading below the $70,000 level. Today, the asset dropped below this psychological threshold for the first time in a week. Just yesterday, ahead of the FOMC meeting, the main cryptocurrency reached the $76,000 mark.
The price is being pressured by rising energy costs amid tensions in the Middle East and by the Federal Reserve’s hawkish pause, which is reducing interest in risk assets.
As for Bitcoin’s alleged oversold condition, the RSI indicator currently stands at 47.13, far from the critical zone below 30. Therefore, technically, Bitcoin cannot be considered oversold and is rather undergoing a correction after a failed test of the $76,000 level.
Whether Cramer’s call should be viewed as another market bottom or, in line with his specific lore, BTC is facing an even deeper decline will become clear in the coming trading sessions.