I believe we’re about to witness the biggest blow-off top in crypto history and here’s why:
The markets are showing all the classic signs of an upcoming euphoric phase that few are prepared for. After analyzing multiple economic indicators and historical patterns, I'm convinced we're about to witness one of the most dramatic asset price surges in modern history - followed by an equally dramatic correction.
1.) The 18-Year Real Estate Cycle Is Peaking -
Real estate has followed a remarkably consistent 18-year boom-bust cycle for over a century. We're currently at the crucial inflection point where land prices typically begin showing weakness. Historically, market tops often align with the point when land prices start to decline. This will trigger a rotation into riskier, faster-moving assets during the final euphoric phase.
2.) Crypto-Friendly Administration -
The current U.S. admins pro-crypto stance creates a regulatory environment that will supercharge adoption. As institutional money feels safe to enter the crypto space, we'll likely see mass FOMO that dwarfs previous bull markets. Retail, institutions, and sidelined capital will all flood in, pushing prices far beyond what most expect.
3.) The Global Liquidity Tsunami -
Global Liquidity is already exploding globally, and once the U.S. finally pivots back to QE, it’s rocket fuel for risk assets. The combination of excess capital and easier monetary policy creates the perfect environment for a parabolic run.
But here’s the warning: after the blow-off top comes the crash. Massive, brutal, and unforgiving.
Be prepared, don’t get trapped.
Position accordingly, take profits when appropriate, and maintain cash reserves for the buying opportunities that will emerge.
What we're witnessing is a rare alignment of macro factors. Those who understand these cycles can capitalize on the upside while preparing for the collapse that history tells us will follow.
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Unsurprisingly, the feed is starting to fill with posts from people short from ATH after the price has dropped 20k from the top.
When we're back at ATHs in a couple of weeks, the same people will post why they're long from the last HTF bottom.
Can't beat Captain Hindsight.
$BTC
I think it's about time we update my HTF analysis from May 23rd, considering we are now close to entering the Danger Zone - as mentioned in the quoted post.
Before you read this, make sure you reach the entire thread (see quoted post) as I will be building on top of that.
In said post, I mentioned that I would start to look for a cycle top around the end of October onward, which I call the Danger Zone:
First off: do I still think higher prices are coming, i.e. the cycle high is not in yet? You bet your bottom dollar I am still expecting higher prices.
Now with that out of the way, let's continue to the next question: do I still think a top in this danger zone is likely?
To answer this, let's revisit one of the main scenarios I was looking at in the quoted post (red line in the screenshot):
"Top in August -> sideways consolidation during the summer -> deviation of high Oct/Nov 2025 to mark the cycle top"
Price is following that squiggle quite nicely when it comes to PA. So the question becomes: do I think this is playing out?
Well, not necessarily. In the markets we need to stay agile and adapt to what happens. Although almost everything played out exactly as I wanted to see it, one thing didn't:
Price.
My red squiggle had the price of BTC more towards 150k-ish, whereas price only briefly visited 125k in the current price action.
Why does this matter? Because of another thing I said in that same post regarding:
"The recipe for calling the next top will be the same as what I used for calling the last 2 inter-cycle tops: timing + structure + sentiment."
When I say sentiment here, a very important point for me is euphoria. Euphoria happens after a very impulsive move towards the upside.
We haven't seen that.
Instead, price nicely took the stairs up towards where we are now. Below I mapped out 2 scenarios:
1. The red scenario is our original scenario (sweeping the summer Aug/Sep range followed by bear market
2. The green scenario is my updated most-likely projection
First, the red scenario. I do NOT think this is impossible. So I am keeping an eye on that, however it is missing the element of Euphoria for me.
Yes, Euphoria with capital E.
This is why I am favoring the green scenario more at the moment, as it would surely lead to a lot of euphoria, and give alts a chance to run too.
Do not pay attention to the exact price levels (I don't have an exact price target), the general idea is what matters.
Basically, I want to see a proper parabolic phase.
The main takeaway is this: if I see this kind of acceleration happen within the next 2 months, I will start to aggressively scale out of my holdings, with the goal of being nearly fully out by end of year.
But what if it doesn't happen?
If we don't see euphoria now a big rejection after taking the high, but rather price keeps taking the stairs up.
Then I will consider the possibility of an extended cycle: higher for longer.
So basically this is when price keeps making new highs as it has done now: without the kind of aggression that leads to massive FOMO.
However, I don't want to dwell into this as this is not my base case. My base case is still what I outlined in the quoted post: putting in the cycle high in the Danger Zone.
At the same time, I am monitoring actively for the two other scenarios I mentioned.
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In Summary
1. I don't believe the cycle high is in yet
2. But I am still looking for the Cycle high in the Danger Zone
3. I think a sweep of the current ATH followed by a bear market is less likely due to a lack of FOMO, which is a result of the absence of a parabolic phase
4. Therefore, I am looking for a parabolic phase to happen in Q4, during which I will be scaling out
5. If that doesn't happen, I will evaluate the other 2 scenarios depending on PA: 1)an extended cycle or 2) deviation of ATH + bear market
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So largely my views are still the same as in the quoted post, with a couple of adjustments due to the PA the market has given us.