TeraWulf (NASDAQ: WULF) is a Bitcoin mining and technology company. The article reviews its weekly Elliott Wave pattern and the current breakout setup.
From the 2023 low, the share price formed a three-wave advance. Wave I ended at $9.30, Wave II fell to $2.06, and Wave III rose to $17.05.
Wave IV then completed at $10.47. The price is now moving higher in Wave V of (I), with a target range of $18.6–$21.1.
To keep this path valid, the price needs to stay above the December 2025 low of $11.13. A move below $11.13 would weaken the current bullish structure.
After Wave (I) completes, the analysis expects a larger Wave II pullback. It then anticipates a return to the weekly uptrend in Wave (III).
The strategy described focuses on entering after corrective pullbacks. It lists 3, 7, or 11-swing corrections, and a “Blue Box” tool for identifying reversal zones.
Based on the current structure, we see TeraWulf continuing its fifth wave rally that began from the $10.47 low. This move is supported by Bitcoin’s recent push above $95,000, driven by consistent institutional inflows into spot ETFs which exceeded $5 billion last month alone. The immediate path points towards our target zone of $18.60 to $21.10 in the coming weeks.
For derivative traders, this suggests an opportunity to use call options to capitalize on the expected final leg up. Considering the target, call options with strike prices of $20 or $22.50 expiring in March or April 2026 could offer leveraged exposure to this rally. We must watch for signs of momentum loss as the stock enters our identified target range.
As we approach the $18.60 – $21.10 area, the analysis indicates a major peak for Wave (I) will form, followed by a significant corrective pullback. Traders should prepare to shift strategies, potentially by acquiring put options to profit from the anticipated decline once the upward trend shows clear signs of exhaustion. This larger correction, which we expect later this year, will set up the next major buying opportunity.
The entire bullish outlook remains valid as long as the stock holds above the key low of $11.13 from December 2025. A break below this level would invalidate the current wave count and signal that a deeper correction has already begun. This price serves as a critical level for managing risk on any long positions.
We must remember the broader context of the strong rally seen across the mining sector since the Bitcoin halving event of 2024. TeraWulf’s performance in 2025 was a direct reflection of this, but high network difficulty remains a factor to watch. The current setup is a continuation of that powerful trend, which we now anticipate is nearing a temporary peak.
