According to CoinDesk, Markus Thielen, the founder of 10x Research, has predicted that Bitcoin could reach levels above $43,000, making it an appropriate time for fresh bullish bets on the cryptocurrency. Thielen's bullish view is based on the Elliot Wave theory, which assumes that prices move in waves rather than simple patterns, and future movements can be predicted by observing the repetitive wave pattern. According to Thielen, Bitcoin has been in a five-wave bullish pattern since early last year, with the recent pullback from roughly $49,000 to $38,500 constituting wave 4 or the temporary retracement. Now, wave 5 has begun and could take prices above $50,000.
Thielen's bullish outlook is consistent with the decline in selling pressure from investors taking profits in the Grayscale Bitcoin Trust (GBTC). The profit-taking was partially responsible for Bitcoin falling into wave 4 correction following the launch of U.S.-based spot ETFs on Jan. 11. Thielen said potential catalysts for a move higher could center around the diminishing impact that the Grayscale GBTC selling could have on the price of Bitcoin, the fact that stocks are making new all-time highs, and Google allowing Bitcoin & Crypto ETF advertisements from today onwards. At press time, Bitcoin was trading at $42,160, representing a 0.3% gain on the day.
