Macroeconomist Predicts Catastrophic 97% Bitcoin Correction Ahead

Macroeconomist Warns of Potential 97% Bitcoin Correction

A prominent macroeconomist has issued a stark warning about Bitcoin's long-term price trajectory, forecasting a devastating decline following what he perceives could be the final peak of its current cycle.

Technical Analysis Points to Major Reversal

Henrik Zeberg, a macroeconomist recognized for his incisive technical analysis, has articulated an "extremely bearish" outlook for Bitcoin based on monthly chart patterns. According to Zeberg's insights shared on X, the cryptocurrency appears to be forming an expanding diagonal structure, indicating it is nearing a critical topping area.

His analysis suggests that Bitcoin could experience a final rally to the mid-$150,000 range—characterized as a blow-off top—before succumbing to a catastrophic correction. Zeberg forecasts a potential decline of 97-98% from this peak, which could plunge Bitcoin's price down to the $3,000-$4,000 range.

Historical Comparisons and Technical Indicators

Zeberg draws parallels between his Bitcoin predictions and the dot-com crash of the early 2000s, when the Nasdaq plummeted more than 80% from its peak. This historical context amplifies the gravity of the correction anticipated in the cryptocurrency market.

Supporting his bearish thesis, Zeberg emphasizes two pivotal technical indicators on Bitcoin's monthly chart. He points out a substantial bearish divergence on the Relative Strength Index (RSI), suggesting waning momentum despite price advances. Furthermore, he highlights an impending bearish crossover on the Moving Average Convergence Divergence (MACD) indicator—a signal technical analysts often interpret as a precursor to significant downward price movement.

Market Implications

Should Zeberg's analysis hold true, the ramifications for cryptocurrency investors could be profound. A decline of such magnitude would represent one of the most severe corrections in Bitcoin's history, potentially erasing years of gains and revisiting price levels last seen several years prior.

Conclusion

While Zeberg's forecast paints a dramatically bearish picture for Bitcoin, it is important to recognize that it reflects one analyst's interpretation of technical patterns and indicators. Cryptocurrency markets remain highly volatile and influenced by numerous factors beyond technical analysis, such as regulatory developments, institutional adoption, and broader macroeconomic conditions. As always, investors are encouraged to conduct comprehensive research and consider diverse perspectives before making investment decisions.

Why It Matters

For Traders

For active traders, Zeberg's analysis signals a critical review of short-term strategies, advising caution in light of potential volatility ahead. Understanding these market indicators may help traders navigate the expected downturn.

For Investors

Long-term investors should take note of this bearish forecasting, as it emphasizes the necessity of risk management in the crypto space. Potential corrections like the one predicted could significantly affect portfolio valuations.

For Builders

Developers and builders in the crypto ecosystem should remain vigilant as market conditions evolve. A drastic correction may influence funding and investment in blockchain projects, guiding decisions around development timelines and resource allocation.