"If you fall for it now, it's over" - A prominent economist exposed the boomerang of Bitcoin's fake rebound!

▲ Bitcoin (BTC), investors, crash/AI generated image ©

As Bitcoin (BTC) cruises towards the $80,000 mark, a megaton warning from a prominent economist has sent shockwaves through the market: the asset's value will literally collapse catastrophically after a short-term 'burnout' style rally. Experts point out that the current uptrend is likely a fake rebound temporarily occurring within a massive downtrend cycle, rather than the beginning of a full-fledged bull market. The diagnosis is that at the moment investor optimism reaches its peak, the market could turn cold and plummet into an unimaginable crash.

According to the cryptocurrency specialized media Finbold on May 25 (local time), renowned economist and market analyst Henrik Zeberg defined Bitcoin's recent recovery as a 'B-wave' rebound occurring within a broad bear market cycle. In an analysis shared with the media, Zeberg argued that during this rebound period, investor sentiment would become extremely overheated, leading to a misjudgment of a bull market, and ultimately result in a merciless and rapid trend reversal. This outlook is based on the Elliott Wave structure accumulated from Bitcoin's early market fluctuation cycles.

Zeberg pointed out that a 'major top' has already been forming on the massive long-term chart structure that has continued since 2012. He explained that Bitcoin may have already completed its long-term fifth wave (Wave 5) near the recent peak where it surpassed $110,000. He warned that in the short term, Bitcoin would likely experience a correction down to the Fibonacci 0.618 retracement level of around $66,426 before rebounding to a level higher than its current price, but once this temporary rally ends, a full-scale downtrend will begin, leading to a deep correction phase where it could fall below the primary support level of $41,492, and even lower over time.

Ominous technical signs are not limited to this. Currently, a clear 'Bearish Divergence' phenomenon is observed in the Relative Strength Index (RSI), where upward momentum weakens despite rising prices, which has historically been a precursor to major crashes. Furthermore, the monthly Moving Average Convergence Divergence (MACD) indicator is also on the verge of entering a 'Bearish Crossover,' a pattern seen just before the harsh crypto winters of 2018 and 2022, adding weight to the bearish outlook.

Another market analyst, TradingShot, also strongly supported this pessimistic scenario. TradingShot, having synthesized Bitcoin's 4-year market cycle structure, halving events, and Fibonacci time ratios, diagnosed that Bitcoin is currently entering a full-fledged downtrend phase of this cycle. According to the media, the final downside target on the chart is open down to the $50,000 level, a figure that precisely coincides with the weekly 350-period moving average, which has reliably served as a bottom support in past bear markets.

Despite these eerie warnings, Bitcoin maintained a solid performance, trading up approximately 1.5% intraday at around $77,513. Zeberg and other experts strongly advised investors not to be misled by temporary surges and neglect risk management, as a powerful, final 'fireworks' rally that could re-stimulate overall market buying sentiment might unfold in the short term before a major crash begins.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*