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This time Henrik Zeberg, one of the most famous macro analysts of the market, says that the current suffering is just an emotional reset before a final euphoria. rises.
Zeberg’s thesis
Zeberg argues that the current state of Bitcoin, Ethereum and the cryptocurrency market as a whole is a classic wave 2 capitulation in an ongoing bull cycle. The Elliott Wave Theory states that this stage follows a significant corrective wave B and is usually when the sentiment is at its lowest, which is precisely when investors tend to give up just before a parabolic growth.
Zeberg observed: “The capitulation is the emotional reset before the final act, not the end. In a bull market, this is where we should feel the worst.”
This interpretation is reflected in the current technical structure of Bitcoin. After a brief rejection from $114,000, the asset is now trading at around $108,000, right above its 200-day moving average (black line). Fear and fatigue are indicated by RSI readings close to 40, but there is still no structural breakdown. Pre-rally accumulation phases are historically characterized by such conditions.
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Zeberg thinks that as the market is flooded with fresh liquidity and risk appetite, the next phase, Waves 3 (4)-5, will produce the most explosive move to date. I believe that Ethereum will follow in a vertical fashion, possibly reaching $6,000, $7,500, $10,000 or even $12,000 as the cycle ends, while Bitcoin will rise well above $160,000.
Zeberg warns that this will be the terminal phase of the Everything Bubble – the parabolic peak before a massive deflationary collapse. “Market sentiment will say the opposite at the top,” he continued, implying that euphoria will overshadow the warning. indicators.
For the moment, the correction clears the market, eliminating weak hands and repositioning for the last and strongest rally of this macrocycle. Zeberg makes it very clear that the bull market is still strong.
