Bitcoin’s wave 5 impulse move has begun and could see prices top $50,000 by the end of the first quarter, 10x Research’s Markus Thielen said, having correctly predicted the recent pullback.
Markus Thielen’s Forecast Near Accurate
Jerrymusa.com reports that the expert who accurately forecasted the latest decline in bitcoin [BTC] to $38,000 now believes that values over $43,000 are suitable for placing new positive wagers on the cryptocurrency.
“We should concentrate on longs, as reversal indicators indicate that a tradeable low is in.
“”Once bitcoin breaks above $43,000, we should re-engage in long positions from a risk management perspective,” Markus Thielen, the founder of 10x Research, wrote in a letter to clients on Monday.
The Elliot Wave theory, which is the foundation of Thielen’s bullish outlook, postulates that prices move in waves as opposed to simple patterns and that future movements can be anticipated by looking at the repeating wave pattern.
The 5 Wave Trend
The theory states that trends develop in five waves, with the dominant trend being represented by “impulse waves” 1, 3, and 5. The remainder are “retrace waves,” denoting a brief pause in the main trend.Since the beginning of the year, bitcoin has been moving in a five-wave bullish pattern, according to Thielen.
The most recent decline from about $49,000 to $38,500 is wave 4, or the temporary retracement. Wave 5 has now started and may cost more than $50,000.
According to Thielen, Elliott Wave research has classified the current retracement to 38,522 as wave (4), with a wave (5) forecast of 52,671, possibly by the end of Q1, 2024.
The bullish prognosis aligns with the reduction in selling pressure from investors realizing gains from the Grayscale Bitcoin Trust (GBTC), a cryptocurrency investment vehicle.
The debut of U.S.-based spot trading after wave 4 of the bitcoin decline was partly caused by profit-taking ETFs on January 11.
The fact that stocks are hitting new all-time highs, Google is permitting Bitcoin and Crypto ETF advertisements starting today, and the potential reducing effect that the Grayscale GBTC selling may have on the price of bitcoin are all potential triggers for a move higher, according to Thielen.
According to CoinDesk data, at the time of writing, the price of bitcoin was $42,160, up 0.3% for the day.