The Bitcoin (BTC) price reached yet another new all-time high of $28,422 on Dec. 27.
Despite the continuous increase, the wave count suggests that Bitcoin is quickly approaching the top of its current move. This could indicate that a corrective move could soon unfold.
For BeInCrypto’s previous Bitcoin wave count article, click here.
Long-Term Bitcoin Wave Count
The long-term count for BTC suggests that the price is near the top of cycle wave 3 (white), currently being in wave 5 (blue).
Once a top is reached and a corrective movement begins, we would expect the entire upward move that began in Sept. to be corrected.
Furthermore, because of the shallow wave 2 (highlighted in red) and the principle of alternation, we would expect a deep wave 4, which could take BTC down to $19,137 or $16,943, the 0.5-0.618 Fib retracement levels of the entire upward movement.
Cryptocurrency trader @TheTradinghubb outlined a chart for BTC giving $29,000-$32,000 as a possible area for the top. The wave count fits with that which we have outlined, in which BTC is completed wave 5 of cycle wave 3.
Current High
A closer look at the movement shows that BTC is also in sub-wave 5 (orange) of wave 5 (blue).
Using a Fib extension on sub-wave 1 gives us potential targets near $29,800 & $33,600, the 3.61 & 4.61 Fib extensions of sub-wave 1, respectively.
And finally, the shorter-term two-hour chart shows that after breaking out from a 4th wave triangle, BTC has completed minor sub-waves 1 through 4 (shown in black).
Therefore, BTC seems to be in minor sub-wave 5 (black) of sub-wave 5 (blue) of wave 5 (orange) of cycle wave 3. So, a significant correction is expected once the move is completed.
Short-Term Movement
Finally, the lower time-frame 30-minute chart further suggests that there is one more minor sub-wave increase before BTC reaches its stop. This is noticeable by the 4th wave pullback formation.
A decrease below the minor sub-wave 1 high at $24,661 high would suggest that the correction has begun.
Conclusion
The Bitcoin price is expected to complete one more short-term upward movement toward $29,800 before beginning a correction.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!
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