Bitcoin will soon have completed sub-wave 5 of its wave 5.
BTC could peak between $ 29,800 and $ 33,500.
The price completed a short term 4th wave pullback.
On December 27, the price of Bitcoin (BTC) reached a new all-time high of $ 28,422.
Despite the continued rise, the wave count suggests that Bitcoin is rapidly approaching the peak of its current movement. This could indicate that a corrective movement will take place shortly.
Click here to view the previous Bitcoin wave analysis articles by BeInCrypto.
Bitcoin’s long-term wave count
BTC’s long-term tally shows that price is approaching the peak of the wave 3 cycle (in white), and that it is currently in its wave 5 (in blue).
When it has peaked and the corrective movement begins, we would expect a correction covering the entire movement started in September.
In addition, due to the hollow wave 2 (indicated in red) and the principle of alternation , one would expect a much deeper wave 4. The latter could bring BTC down to $ 19,137 or $ 16,943, which is the 0.5-0.618 fibonacci retracement level of the entire movement.
Cryptocurrency trader @TheTradinghubb pointed to a BTC chart indicating a possible high between $ 29,000 and $ 32,000. The wave count dovetails with the one we highlighted, and in which BTC is completing wave 5 of the wave 3 cycle.
The possible peak of Bitcoin
Further observation of the movement shows that BTC is also in sub-wave 5 (in orange) of wave 5 (in blue).
Using a fibonacci extension on sub-wave 1, we get a potential target near $ 29,800 or $ 33,600. These are the 3.61 and 4.61 fibonacci extensions of sub-wave 1.
Finally, the shorter-term, two-hour chart shows that after breaking through a 4th wave triangle , BTC has completed minor sub-waves 1-4 (in black).
Thus, the BTC appears to be in sub-wave 5 minor (in black) of sub-wave 5 (in blue) of wave 5 (in orange) of the cycle of wave 3. We therefore expect a correction. considerable once this movement is finalized.
Finally, the shorter 30-minute chart suggests a final minor sub-wave rise before BTC peaks. This is noticeable thanks to the 4th wave fallback formation.
A decline below the top of Minor Subwave 1, at $ 24,661, would suggest the correction has started.
Bitcoin’s price is expected to complete another short-term upswing towards $ 29,800 before initiating a correction.