{"id":1194,"date":"2024-11-06T19:13:05","date_gmt":"2024-11-06T19:13:05","guid":{"rendered":"https:\/\/coinsvalue.net\/blog\/economist-predicts-blow-off-top-for-bitcoin-at-123000-post-trump-win\/"},"modified":"2024-11-06T19:13:05","modified_gmt":"2024-11-06T19:13:05","slug":"economist-predicts-blow-off-top-for-bitcoin-at-123000-post-trump-win","status":"publish","type":"post","link":"https:\/\/coinsvalue.net\/blog\/economist-predicts-blow-off-top-for-bitcoin-at-123000-post-trump-win\/","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’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.<\/p>\n

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.<\/p>\n

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

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<\/a>: “Now everything is lined up for history to repeat itself. US Tariffs implemented into a Recession\u2014reinforcing the downturn and popping the Greatest Bubble ever.”<\/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, 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’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\u2014a technical analysis tool used to predict future price movements based on historical price patterns.<\/p>\n

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.<\/p>\n

\"Bitcoin<\/p>\n

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.<\/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’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.<\/p>\n

At press time, BTC traded at $73,742.<\/p>\n

\"Bitcoin<\/p>\n","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’s big election promises. He wants to establish Bitcoin as a national strategic stockpile,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[119],"tags":[56,816,55,69,182,61,120,121,293,437,817],"class_list":["post-1194","post","type-post","status-publish","format-standard","hentry","category-bitcoin","tag-bitcoin","tag-bitcoin-blow-off-top","tag-bitcoin-news","tag-bitcoin-price","tag-bitcoin-price-prediction","tag-btc","tag-btc-news","tag-btc-price","tag-donald-trump","tag-us-election","tag-us-recession"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/1194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=1194"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/1194\/revisions"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=1194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=1194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=1194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}