Economist Predicts ‘Blow-Off Top’ For Bitcoin At $123,000 Post-Trump Win
06 November 2024 - 5:00PM
NEWSBTC
The 2024 US presidential election is decided. Donald Trump will get
a second term, defeating Kamala Harris. In the midst of election
night, the Bitcoin price rose to a new all-time high of $75,407 on
Binance. The euphoria is driven by Trump’s big election promises.
He wants to establish Bitcoin as a national strategic stockpile,
fire Securities and Exchange Commission (SEC) Chairman Gary Gensler
and generally enforce a crypto-friendly policy. While a Harris
victory would have meant a short-term setback for Bitcoin according
to most experts, the predictions by the majority of experts are
extremely bullish thanks to the Trump victory. However, renowned
economist Henrik Zeberg offers a cautionary perspective. Zeberg
warns that Trump’s proposed economic policies could precipitate a
US recession, leading to a “blow-off top” scenario for Bitcoin and
the broader crypto market. Central to his argument is Trump’s plan
to replace certain taxes with tariffs to stimulate domestic
economic growth. Is A Bitcoin Blow-Off Top Scenario Looming?
Drawing parallels with historical events, Zeberg suggests that
Trump’s tariff strategy could echo the economic missteps of the
1920s and 1930s. In a post on X, he shared a link to the Wikipedia
page for the Smoot-Hawley Tariff Act of 1930. He stated: “Now
everything is lined up for history to repeat itself. US Tariffs
implemented into a Recession—reinforcing the downturn and popping
the Greatest Bubble ever.” Related Reading: Analyst Reveals What
The Gold Chart Says About The Possibility Of Bitcoin Price Reaching
$100,000 The Smoot-Hawley Tariff Act is widely regarded as a
catalyst that deepened the Great Depression. By substantially
increasing US tariffs on imported goods, the act prompted
retaliatory tariffs from other nations, leading to a severe
contraction in international trade. This protectionist spiral
exacerbated global economic decline, resulting in heightened
unemployment and prolonged hardship worldwide. Amid these economic
concerns, Zeberg has projected a significant, yet potentially
short-lived, surge in Bitcoin’s price. “Making it Simple! BTC
target 115-123K,” he asserted via X a few days ago. His analysis is
grounded in Fibonacci extension levels—a technical analysis tool
used to predict future price movements based on historical price
patterns. Related Reading: Institutional Traders Bet On Bitcoin
Exceeding $79,300 By End Of November According to Zeberg’s
analysis, the critical level to monitor is the 1.618 Fibonacci
extension, calculated at $114,916.16. He suggests that this level
is “very likely the top,” indicating that Bitcoin could reach this
price point before experiencing a significant reversal. The
analysis also notes other key Fibonacci levels that may serve as
resistance points during Bitcoin’s ascent. The 0.382 level at
$77,437.88 marks a significant initial resistance following the
breakout from the previous all-time high. The 0.618 level at
$85,205.47 could act as minor resistance as the price climbs.
Additionally, the 1.0 level at $107,435.71 represents a crucial
psychological and technical threshold, while the 1.27 level at
$123,148.19 indicates a possible overshoot beyond the primary
target zone. An annotation on Zeberg’s chart poses the question,
“58% in less than 3 months into the top?” This suggests he
anticipates a rapid price increase within a relatively short time
frame, consistent with historical patterns. At press time, BTC
traded at $73,742. Featured image created with DALL.E, chart from
TradingView.com
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