Bitcoin News Today: Crypto Expert Warns Bitcoin Rally Window Closing Before Recession

Cryptocurrency investors are being cautioned by an expert that the window for a significant rally is closing. The expert, Gert van Lagen, has warned that the current surge in the cryptocurrency market, led by Bitcoin (BTC) hitting a new all-time high above $123,000, may be the last major upswing before a broader economic downturn.

Van Lagen, a cryptocurrency analyst, suggested that a parabolic move similar to the final-stage rallies of 2011, 2013, and 2017 is likely to unfold in the coming months. He believes this could be the last major upswing before a broader economic downturn sets in. "The window for crypto to blow off is shrinking — expect a vertical frenzy like the final phase of 2011, 2013, or 2017 — not 2021. Then comes the recession… and the first true correction in Bitcoin’s history," Lagen said.

Van Lagen's analysis is based on long-term Bitcoin price trends, which he believes are approaching the top of a decade-long channel. He suggests that the current setup indicates a potential climax in 2025, consistent with the final leg of a major Elliott Wave cycle. This expected blow-off phase is forming under high-risk conditions, sparking concern about what may follow.

Beyond the cryptocurrency market, van Lagen highlighted ominous signals from traditional financial markets. He noted that stock indices have reached long-term resistance levels, dating back to the market peaks of 1929 and 2000, while technical patterns indicate signs of a Wyckoff Distribution, which often precedes major market reversals.

At the same time, recession indicators have sharply reversed and are now nearing contraction territory. Despite these warning signs, van Lagen suggested the Federal Reserve is unlikely to implement aggressive rate cuts until economic weakness becomes more evident. Historically, significant monetary easing has only occurred after weaker companies are flushed from the system and labor markets soften significantly.

Van Lagen's warning serves as a reminder that the cryptocurrency market is still in its early stages and that investors should be cautious when investing in digital currencies. While the potential for high returns is attractive, the market is also highly volatile and subject to significant fluctuations. Investors should carefully consider their risk tolerance and investment goals before entering the cryptocurrency market.

The expert's warning also highlights the importance of diversification in an investment portfolio. By spreading investments across a range of assets, investors can reduce their exposure to any single market and mitigate the impact of market volatility. This approach can help investors weather economic downturns and maintain their long-term investment goals.