Founder of 10x Research, Markus Thielen, who previously predicted that Bitcoin would fall to $38,000, stated in a report sent to clients on Monday that a tradable price low has formed as indicated by reversal indicators, and investors should now focus on bullish trades.
Markus Thielen’s bullish view is based on the Elliott Wave Theory. According to this theory, price trends progress through five waves, with waves 1, 3, and 5 being the “main waves” representing the primary trend. Waves 2 and 4 are “corrective waves,” indicating temporary pauses in the primary trend. Markus Thielen believes that Bitcoin has been in a five-wave bullish pattern since early last year, with the recent drop from around $49,000 to $38,500 constituting the fourth wave, or corrective wave. Now, the fifth wave has begun forming and may push the price above $50,000.
It is worth noting that this bullish view is consistent with GBTC’s weakening “profit taking pressure.” This profit taking event led Bitcoin into a corrective phase of the fourth wave after the launch of the U.S. spot ETF on January 11th.