such as bitcoin (Bitcoin) Still finding a way to $80,000, economist and market analyst Henrik Zeberg warned that the asset could face a sharp collapse after what he believes will be a temporary bullish rebound.
He said that the current recovery phase represents a “B-wave” rebound within a broader downward cycle.
According to his joint analysis in X mail On May 25, Investor Sentiment is likely to turn very bullish during the bounce before the market eventually sees a sharp reversal.
The forecast was based on the Elliott Wave structure dating back to early Bitcoin market cycles.
Zeberg pointed to what he described as a “major top” that has been forming in the broader structure since 2012, suggesting that Bitcoin may have completed a long-term fifth wave near its recent highs above $110,000.
It is worth noting that the analysis expects a recovery in the short term after Bitcoin declines to the 0.618 level Fibonacci Level around $66,426, with upside targets above current prices.
However, the broader setup suggests a deeper correction beyond that, with downside targets near the $41,492 support area and possibly lower over time.
Meanwhile, the Relative Strength Index (RSI) shows a bearish divergence, where prices have continued to rise as momentum weakens, a pattern that has historically preceded major reversals.
The monthly MACD is also approaching a bearish crossover, similar to signals seen before the Bitcoin bear markets of 2018 and 2022.
Despite the warning, Zeberg said Bitcoin could still see a strong near-term rally, which could reignite bullish sentiment across the cryptocurrency market before the broader downturn unfolds.
Bitcoin price is a potential crash target
Additional technical indicators shared by the analyst TradingShot Reinforced bearish outlook. In a TradingView mail On May 24, the analyst noted that Bitcoin’s monthly RSI showed bearish divergence, with prices rising as momentum weakens, a pattern historically associated with major setbacks.
Additionally, the MACD appeared close to a bearish crossover similar to signals seen before the 2018 and 2022 bear markets.
A separate cycle-based chart combining Bitcoin’s four-year market structure, halving events, and Fibonacci time levels indicated that the asset is now in the bearish phase of the current cycle.
The analysis predicted a potential decline toward $50,000, in line with $350 per week Moving average Which marked previous bear market bottoms.
By press time, Bitcoin was trading at $77,513, up about 1.5% over the past 24 hours.
