Henrik Zeberg, a macroeconomist known for his often contrarian market outlook, has issued a stark warning regarding Bitcoin, asserting that the digital asset is currently experiencing the “most extreme bubble in history.” He anticipates a significant market correction that could drastically reduce Bitcoin’s value, potentially even to levels as low as $150 USD.
This pronouncement arrives at a time when prevailing sentiment in both traditional finance and the cryptocurrency sphere leans heavily towards bullish forecasts, with projections of Bitcoin reaching $150,000 USD. Zeberg, however, interprets this widespread optimism as a critical indicator of impending decline. He contends that excessive euphoria and market consensus often precede major historical downturns, suggesting that current conditions are mirroring the final stages of previous financial bubbles.
Technical Indicators Signal Potential Reversal
Zeberg supports his bearish outlook with technical analysis, pointing to specific chart patterns and indicators. He identifies a long-term ascending wedge formation on Bitcoin’s chart, a pattern historically associated with trend exhaustion. Furthermore, he highlights a negative divergence with the Relative Strength Index (RSI), where prices continue to rise but the momentum behind the movement diminishes, often signaling a potential for a sharp reversal.
Despite his dire predictions, Zeberg suggests that a final upward surge, which he terms the “final rally,” might precede the anticipated crash. While he does not specify a precise target for this potential peak, he outlines three stark scenarios for Bitcoin’s value post-rally: a more optimistic decline to $16,000 USD, an intermediate scenario of $4,000 USD, and an extreme, “apocalyptic” collapse to $150 USD.
As of this analysis, Bitcoin was trading around $110,600 USD, experiencing a slight daily decrease and a weekly decline of approximately 9%. The immediate technical support level to monitor is $110,000 USD. A breach of this level could impede Bitcoin’s ability to challenge the $115,000 USD mark.
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!