{"id":18404,"date":"2024-11-06T16:00:59","date_gmt":"2024-11-06T16:00:59","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=18404"},"modified":"2024-11-06T16:00:59","modified_gmt":"2024-11-06T16:00:59","slug":"economist-predicts-blow-off-top-for-bitcoin-at-123000-post-trump-win","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=18404","title":{"rendered":"Economist Predicts \u2018Blow-Off Top\u2019 For Bitcoin At $123,000 Post-Trump Win"},"content":{"rendered":"

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.<\/p>\n

The euphoria is driven by Trump\u2019s big election promises<\/a>. 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.<\/p>\n

However, renowned economist Henrik Zeberg offers a cautionary perspective. Zeberg warns that Trump\u2019s proposed economic policies could precipitate a US recession<\/a>, leading to a \u201cblow-off top\u201d scenario for Bitcoin and the broader crypto market. Central to his argument is Trump\u2019s plan to replace certain taxes with tariffs to stimulate domestic economic growth.<\/p>\n

Is A Bitcoin Blow-Off Top Scenario Looming?<\/h2>\n

Drawing parallels with historical events, Zeberg suggests that Trump\u2019s 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<\/a>: \u201cNow everything is lined up for history to repeat itself. US Tariffs implemented into a Recession\u2014reinforcing the downturn and popping the Greatest Bubble ever.\u201d<\/p>\n

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<\/a>, resulting in heightened unemployment and prolonged hardship worldwide.<\/p>\n

Amid these economic concerns, Zeberg has projected a significant, yet potentially short-lived, surge in Bitcoin\u2019s price. \u201cMaking it Simple! BTC target 115-123K,\u201d he asserted via X a few days ago. His analysis is grounded in Fibonacci extension levels\u2014a technical analysis tool used to predict future price movements based on historical price patterns.<\/p>\n

According to Zeberg\u2019s analysis, the critical level to monitor is the 1.618 Fibonacci extension, calculated at $114,916.16. He suggests that this level is \u201cvery likely the top,\u201d indicating that Bitcoin could reach this price point before experiencing a significant reversal.<\/p>\n

The analysis also notes other key Fibonacci levels that may serve as resistance points during Bitcoin\u2019s ascent. The 0.382 level at $77,437.88 marks a significant initial resistance following the breakout from the previous all-time high.<\/p>\n

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.<\/p>\n

An annotation on Zeberg\u2019s chart poses the question, \u201c58% in less than 3 months into the top?\u201d This suggests he anticipates a rapid price increase within a relatively short time frame, consistent with historical patterns.<\/p>\n

At press time, BTC traded at $73,742.<\/p>","protected":false},"excerpt":{"rendered":"

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\u2019s big election promises. He wants to establish Bitcoin as a national strategic stockpile, […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-18404","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/18404"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18404"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/18404\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}