Bitcoin (BTC<\/a>) may gain another 50% before seeing a mass sell-off to complete its bear market, new research predicts.<\/p>\n In the latest edition<\/a> of its regular markets newsletter, \u201cThe Crypto Circular,\u201d trading firm QCP Capital delivered a grim warning to those who believe that crypto winter is over.<\/p>\n Bitcoin has surprised by retaining new support levels abruptly reclaimed in its week-long bull run, so far topping out at $21,650.<\/p>\n Despite widespread suspicion over the \u201cchoreographed\u201d move, BTC\/USD has clawed back key trend lines and psychological price points.<\/p>\n For QCP, there is still plenty of fuel to send the pair higher, but that still does not mean that the bear market overall is done and dusted.<\/p>\n Updating its long-term Elliott Wave price analysis, it argued that the current upside constitutes a Wave 4 for Bitcoin \u2014 essentially a bear market relief move.<\/p>\n \u201cMake no mistake, what we are seeing now in risk markets are characteristic of Wave 4s,\u201d it wrote. <\/p>\n \u201cWe are sticking with our view that this bounce since November 2022 lows, is just a Wave 4 correction and we have a final Wave 5 sell-off to go.\u201d <\/p><\/blockquote>\n Such a final capitulation would be no joke. Wave 5, a previous chart from December 2022,\u00a0showed<\/a>\u00a0that both Bitcoin and Ether (ETH<\/a>) could potentially drop below their 2022 floor.<\/p>\n \u201cThe extension we are currently seeing so far in 2023 falls within the parameters of the Wave 4, even if it has broken some near-term technical levels to the topside, thereby increasing bullish momentum,\u201d the newsletter continued.<\/p>\n Elliott Wave theory states that the 20%, 38.2% and 50% Fibonacci retracement levels are of particular importance in Wave 4. Since Bitcoin has already corrected almost 20% from the recent macro lows, two remaining price targets are now in play: $27,100 and $31,850.<\/p>\n \u201cTechnically until these levels are broken, Wave 4 is still in play and a final Wave 5 for these markets that break the lows should not be ruled out,\u201d QCP said. <\/p>\n \u201cWithout a doubt, the pain trade is lower right now.\u201d<\/p><\/blockquote>\n As Cointelegraph reported, Bitcoin has swapped its \u201cup only” trading behavior for some much-needed consolidation<\/a> in recent days.<\/p>\n Related:\u00a0Bitcoin sees new 4-month high as US PPI, retail data posts \u2018big misses\u2019<\/a><\/em><\/strong><\/p>\n This was helped by panic centered on the United States\u2019 takedown of crypto exchange Bitzlato<\/a>, coming amid fresh regulatory concerns<\/a> over Bitcoin from participants at the World Economic Forum, now underway in Davos, Switzerland<\/a>.<\/p>\n BTC\/USD traded at around $20,800 at the time of writing on Jan. 19, data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> showed.<\/p>\n The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\nResearch warns of \u201cfinal Wave 5 sell-off\u201d<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/023ae685-b737-4a34-9963-e25523a142de.png\")
WEF accompanies shaky BTC price action<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/b325eb53-6175-4aa0-bc2d-c254a2727a3c.png\")