Bitcoin Eyes $48,000 Rally Amid Bullish Seasonal Trends: 10x Research

Published: Feb 8, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

Bitcoin is gaining momentum for a rally towards $48,000 in the coming days based on bullish seasonal trends and clearing key technical resistance levels this week.

According to Markus Thielen, head of research at Matrixport and founder of 10x Research, Bitcoin’s breakout above $44,000 resistance has opened the door for further upside just as BTC enters a historically positive period around the Chinese New Year.

Key Takeaways

  • Bitcoin has surged over 5% this week to above $45,000.
  • The breakout cleared stiff overhead resistance around $44,000.
  • Thielen anticipates a short-term increase to $48,000 thanks to seasonal trends.

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Can Bitcoin Get a Chinese New Year Boost?

Citing extensive backtesting analysis, Thielen noted Bitcoin has posted positive returns in the periods around the Chinese New Year over the last nine years.

“The next few days are of paramount statistical importance as Bitcoin tends to rally by +11% around Chinese New Year,” Thielen wrote, referring to the Year of the Rabbit celebrations beginning February 10.

With Bitcoin entering this seasonally strong window on a bullish note after breaking key resistance, Thielen believes the technical and fundamental backdrop is ripe for a continued rally.

In addition to the $48,000 target for the coming week, Thielen sees scope for more sustained upside in the weeks ahead. Using Elliott Wave theory to forecast trends, he believes Bitcoin remains in the early stages of a new bull impulse targeting $52,000 by mid-March.

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The latest breakout confirmed BTC is past the corrective “Wave 4” retracement stage and has now resumed the main uptrend in the fifth and final leg, referred to as “Wave 5” in Elliott Wave terminology.

With Bitcoin halving anticipated to happen in 73 days, according to the Milkroad Bitcoin halving countdown, several analysts also expect a pre-halving rally.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.