CNBC's Jim Cramer has issued a stark warning about Bitcoin's price action, declaring the cryptocurrency is flirting with a "code red" level as it experiences a sharp downturn. Cramer publicly urged MicroStrategy Executive Chairman Michael Saylor to step in with aggressive buying to halt the slide.
Bitcoin's price plunged to a new yearly low of $72,185, according to CoinGecko data, trading near $76,000 at press time. This represents a 16% decline over the past seven days. The price briefly dipped near $73,000 before stabilizing, with trading volume surging 18% over 24 hours to $68 billion.
Cramer flagged $73,600 as a critical line of support that Bitcoin must hold, while also mentioning $73,800 as another must-hold level. Social media discussions have shifted focus toward downside targets in the $50,000-$59,000 range, with mentions of $90,000-$99,000 fading significantly.
The market is undergoing a severe leverage flush, with total liquidations hitting $861.28 million over the last 24 hours. Of this amount, approximately $677.53 million came from long positions, indicating a massive capitulation event.
Analysts warn the recent plunge opens the door to the $70,000 level, which Michael Burry previously warned could trigger institutional margin calls. Some technical analysts, including Peter Brandt, have suggested potential targets as low as $54,000 if the downtrend continues.
Despite the bearish sentiment, Santiment data suggests there's potential for a short-term relief rally, as markets often move opposite to crowd expectations. Meanwhile, Matt Hougan of Bitwise Invest has stated that the crypto winter is "almost over," providing some counterpoint to the prevailing fear.
