Bitcoin breaks 44K, Lunar New Year market rally begins, watch out for the ominous fifth wave

Bitcoin finally broke out of the consolidation pattern yesterday, surpassing the wedge resistance zone of 44,000, while Ethereum also broke through the 2,400 level. As the Dow and S&P hit new highs, will the cryptocurrency market also see a boost with the upcoming Chinese New Year?

Bitcoin Breaks Through 44K, Kickstarting the Lunar New Year Market?

A few days ago, it was reported that 10X Research shared a winning strategy for the Lunar New Year - buy Bitcoin three days before the Lunar New Year, sell it 10 days later, with an average return rate of up to 10%, making money in 91% of the years out of the past eleven years.

10X Research: Winning Strategy for Bitcoin during Chinese New Year, with a 90% success rate and 10% return

Last night, as Taiwan wrapped up the last working day before the Lunar New Year holiday officially begins, Bitcoin also broke out of the long consolidation pattern, surpassing the upper edge of the wedge pressure zone at 44,000, officially kicking off the Lunar New Year market?

Is the Evil Fifth Wave of Elliott Waves Theory Beginning?

According to Elliott waves theory quoted by 10X Research, Bitcoin reached the low point of the fourth wave at 38,555 on 1/23, officially starting the final rising phase of the fifth wave, with the expectation that Bitcoin will reach the target of 52,000 by mid-March.

Matrixport Analyst: Bitcoin's "Fourth Wave" Ends and Turns Bullish, Targeting $50,000 in the First Quarter

In a bull market, the fifth wave plays the final rising phase, it may be smaller than the third wave of the primary uptrend, or it may continue to rise, as its amplitude is difficult to predict. The market is also prone to FOMO at this time. Once the market quickly reverses, it will trap many people at the peak, hence often referred to as the "evil fifth wave."

10X Research expects that the fifth bull market may peak between April and September 2025. This is based on halving cycle analysis, with the predicted price possibly continuing 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 risks properly when entering the market and always DYOR (Do Your Own Research).