Economist Henrik Zeberg says the crypto market is suddenly flashing bullish for altcoins as he warns of worsening macro conditions.
Zeberg tells his 172,200 followers on the social media platform X that altcoins have started to outperform Bitcoin (BTC) based on the flagship crypto’s dominance level (BTC.D).
The BTC.D is the ratio between the market cap of BTC versus the market cap of all crypto assets combined. At time of writing, BTC.D is at 57.65%.
The analyst uses the Elliott Wave theory to forecast a massive run for altcoins. The theory states that an asset tends to witness a five-wave rally with wave three being the longest and the strongest move up.
“We have had the first initial push in wave one of the BTC Dominance Index. Hardly noticeable! It will be in wave three (which starts now) that we really see the big push in altcoins. And it only ends after another three waves from here in wave three, wave four, wave five. When? We will have to see! Most importantly is to be on the right side of the trade.”
Zeberg is also predicting a blow-off top for the markets sooner rather than later.
In technical analysis, a blow-off top is a chart pattern showing a sudden rise in price that is followed by a sharp decline.
He cites a survey poll from Bloomberg and business research group The Conference Board showing that a majority of consumers are feeling bullish on the markets for the next year, which he suggests is a bearish signal.
“TOP IS NOT IN yet on S&P 500, Nasdaq, BTC, alts. Mega rally to develop = Blow-off top. But this is funny! Now convince me again why I should be so bullish. Major top will be in soon (and already is for Dow Jones).”
Lastly, he suggests there will not be an economic “soft landing,” citing a Financial Times report that shows US credit card defaults have reached their highest level since 2010.
“Another sign of the ‘soft landing.’”
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