Economist Henrik Zeberg says that a loss of strength for the dollar could be the catalyst that breathes new life into crypto assets.
Zeberg tells his 136,000 followers on the social media platform X that lower bond yields and a weakening dollar index (DXY), which pits the dollar against a basket of other major foreign currencies, will create an “amazing environment” for risk assets like crypto.
To ride the crypto rally, Zeberg says he has his eye on JasmyCoin (JASMY), a blockchain-based personal data storage project.
“I think a push lower in DXY and yields will create an amazing environment for crypto into the last phase of this risk asset bull market.
I think the next phase for Jasmy is wave three!
Later wave four into summer (while DXY bounces) – and then the final boost into late summer – early Autumn.
It may be that the target “only” becomes $0.3ish… but for now, the above is my main thesis.
I AM THE JASMY-FATHER!”
The economist appears to be using the Elliott Wave theory in his analysis. The theory states that a bullish asset will witness a five-wave move to the upside before topping out.
Zooming in on JASMY’s technicals, Zeberg says that the moving average convergence divergence (MACD) and the relative strength index (RSI) indicators are in the process of crossing bullish on the daily chart.
The RSI and MACD are both momentum indicators that traders use to spot points of potential trend reversals.
Says Zeberg,
“Bullish cross-over on MACD.
RSI breaking the downward trend.
We have seen that before….. just before the 400-500% Run higher.
This time, I expect the move to be BIGGER!
All onboard?”
At time of writing, JASMY is worth $0.02, up over 6% in the past day.
As for Bitcoin (BTC), Zeberg previously said the crypto king will be ready to enter a “melt-up” phase once its monthly RSI hits 70.
”So I got $110,000-$115,000 for Bitcoin. It is actually a part of a larger pattern. I see that this is either the beginning of a new bull [run], but it needs to take a long break after the blow-off top.
But we haven’t gotten to the really steep part of it yet. We see that we get to [an] RSI above 70, that is really when we see the steep part.”
At time of writing, Bitcoin is trading for $64,400 with its monthly RSI hovering at 68.
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Generated Image: Midjourney