The US stock market rose yesterday, with the S&P 500 Index closing above 4,900 points, reaching a new historical high along with the Dow Jones Industrial Average. Bitcoin also rebounded from its recent low last week and has now broken the $43,000 resistance level. Markus Thielen, an analyst at Matrixport, believes that Bitcoin has entered the fifth wave of the Elliott Wave Theory and has a price target of $52,671.
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Market focuses on tech stock earnings and Fed interest rate decisions
Bitcoin rebounds from recent low and breaks $43,000 resistance
This week, major tech companies’ earnings will be released, including Alphabet (GOOGL), Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta. Whether these tech giants can deliver impressive results as expected and lead the stock market’s rally this year will be closely watched by investors.
The first interest rate decision of 2024 will also be announced on Thursday, February 1 (Taiwan time). While the market generally expects the Federal Reserve to maintain interest rates at a high range of 5.25% to 5.5%, investors will infer the future pace of rate cuts from Chairman Powell’s post-meeting press conference. At the December meeting, Powell mentioned for the first time that officials had started considering rate cuts, leading to an increase in optimism about a soft landing for the US economy. Previously, many investors even anticipated that the Fed would initiate a rate cut cycle as early as March.
However, expectations of rate cuts have been pushed back to May following strong economic data in recent weeks. The non-farm payroll data to be released this Friday will also be one of the market’s focal points.
Markus Thielen, an analyst at Matrixport, turned bullish on Bitcoin when it reached $40,100. His indicators had shown that Bitcoin could retrace to the $36,000 to $38,000 levels, and Bitcoin did indeed drop to $38,500, narrowly missing their predicted target.
Thielen quoted the well-known technical indicator Elliott Wave Theory and pointed out that the recent pullback from $49,000 to $38,500 formed the fourth wave. The fifth wave has now started, and once it breaks $43,000, bullish positions should be reestablished. He expects the fifth wave to potentially complete in the first quarter with a price target of $52,671.
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Matrixport analyst: Bitcoin’s “fourth wave” ends and turns bullish, first quarter target of $50,000
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Markus Thielen
Bitcoin
US stock market
Federal Reserve
Further reading:
Why is there no Bitcoin ETF? Vanguard explains: Immature speculative asset without intrinsic value
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