Bitcoin Breaks $44K, Lunar New Year Market Starts, Beware of the Sinister Fifth Wave
Bitcoin finally broke out of its consolidation phase yesterday, surpassing the wedge-shaped resistance zone of 44,000. Ethereum also broke through the 2,400 level. As the Dow Jones and S&P hit new highs, will the cryptocurrency market also see a Chinese New Year rally?
A few days ago, Chain News reported that 10X Research shared a winning strategy for the Lunar New Year – buying Bitcoin three days before the Lunar New Year and selling it 10 days later, with an average return rate of 10% and a 91% success rate over the past eleven years.
Last night, on the last working day before the Lunar New Year in Taiwan, Bitcoin ended its long consolidation phase and broke through the upper boundary of the wedge-shaped resistance zone of 44,000, officially starting the Chinese New Year rally.
According to the Elliott Wave Theory quoted by 10X Research, Bitcoin has reached the low point of the fourth wave at 38,555 on January 23, officially starting the final upward phase of the fifth wave. It is expected that Bitcoin will reach the target of 52,000 by mid-March.
In a bull market, the fifth wave represents the final upward phase, which can be smaller than the third wave of the main upward phase or continue to rise. Its magnitude is difficult to predict, and the market tends to be overly FOMO at this time. Once the trend quickly reverses, many people will be caught at the high point, which is why it is often referred to as the “evil fifth wave.”
10X Research also expects that the fifth bull market may reach its peak between April and September 2025. This is based on the analysis of halving cycles, and it predicts that prices may continue to rise for fourteen months.
However, since it is the evil fifth wave, it also means that the timing of the final reversal is difficult to predict. Investors must manage their risks and DYOR (Do Your Own Research) when entering the market.
Related reading:
10X Research: Bitcoin’s explosive rise will start in a few days, reaching 52,000 by mid-March
10X Research: Winning strategy for Bitcoin during the Chinese New Year, with a 90% success rate and a 10% return on investment.
