Analyst Reveals Why The Bitcoin Price Is Extremely Bearish Right Now
Bitcoin’s short-term worth motion is still without bullish momentum, and based on macroeconomist Henrik Zeberg, the longer-term outlook could also be deteriorating as effectively.
Henrik Zeberg shared a strongly bearish evaluation of the market’s present construction in a submit on the social media platform X with the conclusion that Bitcoin is now not behaving like an asset in a wholesome enlargement section. Instead, he described Bitcoin as approaching an important peak, warning that the present construction carries an elevated threat of a pointy draw back transfer as soon as that peak is in place.
Bitcoin’s Expanding Diagonal Points To Price Top
Zeberg’s Bitcoin outlook is based on the increasing diagonal construction on Bitcoin’s month-to-month candlestick timeframe chart. This long-term sample, which has been taking part in out since Bitcoin’s creation, reveals rising volatility, with the Bitcoin worth making larger highs and decrease lows with a widening vary.
According to the chart he shared, Bitcoin seems to be finishing the ultimate levels of this construction, and that is anticipated to be characterised by exhaustion. Zeberg labels the present zone as a topping space, the place upside progress turns into more and more unstable even when the value continues to extend.
Interestingly, the chart projected a ultimate surge as a blow-off high that might carry Bitcoin to the mid-$150,000 range. However, on this framework, that ultimate push isn’t an indication of energy however an indicator of late-cycle overconfidence. Expanding diagonals are inclined to resolve violently as soon as the construction breaks, and Zeberg views the present setup as wanting like the place optimism peaked simply earlier than a reversal.
From Euphoria To A Deep Crash Scenario
Zeberg’s most controversial claims are in his projected draw back targets. According to him, as soon as the ultimate euphoric rally performs out and Bitcoin reaches above $150,000, it may enter right into a collapse on a scale that almost all Bitcoin traders currently consider unthinkable.
He in contrast the setup to the dot-com period, when the Nasdaq fell by greater than 80%, and famous that Bitcoin has traditionally amplified each upside and draw back strikes. Based on that logic, he predicted a situation the place a broader AI and crypto bubble unwinds, resulting in a Bitcoin worth crash of about 97% or 98% from the eventual peak.
This interprets right into a technical minimal goal between $3,000 and $4,000, with the opportunity of even deeper declines. Although the ultimate rally could also be dramatic, holding by the next crash could possibly be devastating for unprepared traders.
Zeberg additionally highlighted momentum indicators that he believes support the bearish outlook. Bitcoin is displaying what he describes as large bearish divergence on the month-to-month timeframe. This is a state of affairs the place worth continues to grind larger however momentum indicators such because the RSI fail to substantiate these highs.
Another indicator is the month-to-month MACD, which can also be approaching, or already printing, a bearish crossover on the long-term chart.
