Head of research and strategy at crypto financial services platform Matrixport, Markus Thielen, has recently predicted that the price of Bitcoin could reach $50,000 as bullish bets continues to increase.
According to Thielen, his prediction is based on the Elliot Wave theory, which is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology.
The theory specifies particular rules and recommendations for recognizing and categorizing certain wave patterns, such as wave direction, length, and momentum. According to the hypothesis, these patterns can be detected and used to forecast future market behavior. Also, it is frequently utilized to make informed trading decisions in the stock, Forex (FX), and commodities markets.
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Thielen analysis posits that 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. With the market currently on wave 5, prices are projected to hit $50,000 and above.
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.
He added that potential catalysts for a move higher could center around the diminishing the 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.
It is worth noting that the price of Bitcoin has continued to swing back and forth, which saw it spike to $49,000 on January 11, and dropped to a low of $38,600 on January 23. The rapid swings according to analysts are attributed to the historic approval of the first spot Bitcoin ETFs in the US and the confusion surrounding the process.
With the recent price of Bitcoin at $42,000, reports reveal that over $4 billion of funds have flowed into the new spot Bitcoin ETFs, particularly to products operated by BlackRock and Fidelity.
Several crypto experts predict a bright future for the asset, while some suggest that investors waiting for the price to crash toward the $30,000 price, will be disappointed.
However, despite a market dip due to profit-booking and GrayScale outflows, Bitcoin has maintained its position at the $40,000 level, reflecting confidence from institutional and retail investors.
There are predictions of substantial inflows of $5-7 billion in the next three months, with a broader perspective foreseeing institutional commitment and potential inflows reaching $500 billion within 2-5 years.