Analyst Eyes Bitcoin Longs Surpassing $43K: A Detailed Look

• Bitcoin's Potential Rise Above $43,000: Analyst's Prediction
• Elliot Wave Theory: Basis of Prediction
• Bitcoin's Bullish Wave Pattern
• Consistent Bullish Outlook

Bitcoin's Potential Rise Above $43,000: Analyst's Prediction

The analyst who accurately forecasted Bitcoin$42,260 -0.64%'s recent slump to $38,000 now suggests that levels exceeding $43,000 are suitable for making new optimistic bets on the cryptocurrency. This statement is attributed to Markus Thielen, the Founder of 10x Research. With reversal indicators pointing to a tradable low, our focus should shift towards longs. From a risk management viewpoint, long positions should be resumed once Bitcoin surpasses $43,000, stated Thielen on Monday.

Elliot Wave Theory: Basis of Prediction

Thielen's optimistic perspective is fundamentally based on the Elliot Wave theory. This principle posits that price movements occur in a wave-like pattern rather than simplistic shapes, and future fluctuations can be anticipated by studying this recurring pattern. The theory propounds that trends advance in five waves, with waves 1, 3, and 5 termed as impulse waves, symbolizing the main trend. The remaining waves are retrace waves, indicating a temporary break in the main trend.

Bitcoin's Bullish Wave Pattern

According to Thielen, Bitcoin has been following a five-wave bullish pattern since the beginning of the previous year. The recent drop from approximately $49,000 to $38,500 designates wave 4 or the temporary retraction. The commencement of wave 5 could potentially elevate prices beyond $50,000. The Elliot Wave analysis categorizes this retraction to 38,522 as wave (4), with a wave (5) projection of 52,671 - possibly by the end of Q1, 2024, noted Thielen.

Consistent Bullish Outlook

The bullish forecast aligns with the reduction in selling pressure from investors profiting from the crypto investment vehicle, the Grayscale Bitcoin Trust (GBTC). The profit-taking partly led to Bitcoin falling into wave 4 correction following the introduction of U.S.-based spot ETFs on Jan. 11.

Edited by Jonathan Stoker