Markus Thielen, the founder of 10x Research, who had previously predicted that Bitcoin would drop to $38,000, stated in a report sent to clients on Monday that a tradable price low has been formed, 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 “impulse waves” that represent the main trend. Waves 2 and 4, on the other hand, are “corrective waves” that indicate temporary pauses in the main 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 forming the fourth wave, or the corrective wave. Now, the fifth wave has started to form and could potentially drive the price above $50,000.
It is worth mentioning that this bullish view aligns with the weakening of the “profit-taking understanding selling pressure” in GBTC. This profit-taking event caused Bitcoin to enter a corrective phase after the launch of the US spot ETF on January 11th.
