Like Bitcoin (BTC) continues to find a way to $ 80,000, the economist and the stock market Henrik Zeberg warned that the stock may face a big fall after what he believes will be a short period of damage.
He said that the current session represents a fast-moving “B-wave” within the bearish cycle.
According to his analysis shared in X post on May 25, Investor sentiment needs to change significantly during the retracement period before the market changes dramatically.
The pattern is based on the Elliott Wave pattern of the Bitcoin market.
Zeberg described what he called the “highest level” made since 2012, suggesting that Bitcoin may have completed a fifth wave near its recent high above $110,000.
In particular, the analysis also makes a short-term recovery after Bitcoin returned to 0.618 Fibonacci level around $66,426, with targets to rise above current prices.
However, the broader set-up suggests a deeper correction later, with lower targets near the $41,492 support area and the potential to lower in the near term.
At the same time, the relative strength index (RSI) shows a bearish divergence, where prices continued to rise while strength weakened, a trend that had already started a major reversal.
The monthly MACD indicator is also approaching a bearish consolidation, similar to the signals seen before the Bitcoin bear markets in 2018 and 2022.
Despite the warning, Zeberg said that Bitcoin could still see a long-term rally, which could bring positive sentiment to the crypto market before a major decline.
Bitcoin price possible damage target
Additional technical indicators shared by an expert TradingShot reinforcing the bearish trend. In a TradingView post on May 24, the analyst said that Bitcoin’s monthly RSI showed a bearish divergence, and prices rise as the rise weakens, a historical pattern associated with major changes.
In addition, the MACD appeared close to bearish consolidation similar to the signals seen before the 2018 and 2022 markets.
A different cycle describing the synthesis chart Bitcoin four-year market structure, and half events, and Fibonacci levels time said that the economy is now in the bearish part of the current cycle.
The analysis revealed a potential drop of up to $50,000, corresponding to 350 per week move approx which underwrote the previous stock market.
As of press time, Bitcoin was trading at $77,513, up nearly 1.5% in the past 24 hours.
