TeraWulf (NASDAQ: WULF) is a Bitcoin mining and technology company. This article reviews its weekly Elliott Wave pattern and the current breakout setup.
From the 2023 low, the share price formed a three-wave rise. Wave I ended at $9.30, Wave II dropped to $2.06, and Wave III climbed to $17.05.
Wave IV then finished 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 setup valid, the price must stay above the December 2025 low of $11.13. A move below $11.13 would weaken the current bullish structure.
After Wave (I) ends, the analysis expects a larger Wave II pullback. After that, it anticipates a return to the weekly uptrend in Wave (III).
The strategy focuses on entering after corrective pullbacks. It highlights 3-, 7-, or 11-swing corrections and a “Blue Box” tool used to spot likely reversal zones.
Based on the current structure, TeraWulf appears to be continuing its fifth-wave rally from the $10.47 low. This move also has support from Bitcoin’s push above $95,000, helped by steady institutional inflows into spot ETFs, which topped $5 billion last month alone. The near-term path still points to the $18.60 to $21.10 target zone in the coming weeks.
For derivatives traders, this may create an opportunity to use call options to target the expected final move higher. Given the target zone, call options with $20 or $22.50 strikes and March or April 2026 expirations could provide leveraged exposure to the rally. Traders should also watch for fading momentum as the stock reaches the target area.
As price moves into the $18.60–$21.10 range, the analysis suggests Wave (I) could top out, followed by a large corrective pullback. Traders may want to prepare to shift tactics, potentially using put options once the uptrend shows clear signs of exhaustion. This larger correction, expected later this year, could set up the next major buying opportunity.
The bullish outlook stays intact as long as the stock holds above the key $11.13 low from December 2025. A break below this level would invalidate the current wave count and suggest a deeper correction is already underway. This price level is important for risk management on any long positions.
It also helps to keep the bigger picture in mind: mining stocks have rallied strongly since the 2024 Bitcoin halving. TeraWulf’s 2025 performance reflected that trend, though high network difficulty is still a risk to monitor. The current setup continues that powerful move, which now appears to be nearing a temporary peak.
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