Bitcoin is poised for a potential upswing with the Lunar New Year approaching, eyeing a short-term target of $48,000, guided by past trends and market analysis. Market expert Markus Thielen of Matrixport and 10x Research notes a significant connection between the cryptocurrency’s performance and the Lunar New Year. Thielen suggests that Bitcoin historically averages an 11% gain during the festive period.
Bitcoin’s Gains Linked to Lunar New Year
In his analysis, Thielen indicates the statistical importance of the days surrounding the Lunar New Year for Bitcoin, pointing out the pattern of consistent gains during the period. He proposes a strategy for investors to benefit from this trend by timing their market activities before and after the New Year celebrations.
Bitcoin’s recent advance past the $44,000 resistance level and subsequent move beyond $45,000 may signal a departure from its corrective phase, which bottomed out near $38,500 in late January. Thielen identifies this progress as a foundational step toward reaching the $48,000 mark in the near future.
Technical Analysis Predicts Further Gains
Employing Elliott Wave theory, Thielen predicts further gains for Bitcoin. This theory posits that market trends follow a pattern of waves, and Bitcoin is presumed to be in the final stage of this pattern, poised for an uptick. Thielen sets his sights on a $52,000 target by mid-March.
The melding of historical patterns and technical analysis presents a bullish forecast for Bitcoin in the upcoming period. With the Lunar New Year as a catalyst, Bitcoin is expected to potentially reach new heights, with $48,000 being the next critical milestone.
The dynamic nature of the cryptocurrency market, combined with Thielen’s insights, provides valuable guidance for investors seeking to understand market trends and capitalize on upcoming opportunities.
