Bitcoin wave analysis to determine its peak

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 News Trader 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.

Bitcoin’s recent transactions shed light on institutional accumulation trend

The bitcoin price has held fairly steady below $24,000, with sellers unable to firmly chip away at its strength despite weakness seen in altcoins.

BTC’s dominance has risen rapidly as it sucks the oxygen out of the space, with analysts widely targeting continued strength against the altcoins.

However, Bitcoin System app still has some major hurdles in its way that could continue to hinder its growth and prevent a massive uptrend.

This includes the massive resistance between $24,000 and $24,200, and whether or not it can break above this level should provide serious insight into its prospects.

An on-chain analyst explains that certain Coinbase transactions confirm a trend of institutional accumulation.

Bitcoin has been consolidating over the past week and has seen some tumultuous price action that has seen it hover between $22,000 and highs of $24,200. The selling pressure here has been pretty significant.

Still, any rejection and subsequent decline was quickly absorbed by the bulls – suggesting that there is a strong likelihood that another rise is imminent.

An on-chain analyst also notes that transaction activity on Coinbase indicates institutional engagement in the market, including what appears to be a recent transaction of 12,006 BTC sent to various OTC-related cold wallets.

Bitcoin shows signs of strength as altcoins plummet

At the time of writing, Bitcoin is trading at $23,730, which is roughly the price at which it has been trading in recent days.

Selling pressure between $24,000 and $24,200 has triggered several strong sell-offs, but there is a possibility that the bulls will be able to catalyze further gains in the medium term.

This possibility stems from the strong reactions Bitcoin has shown after each sell-off. The bears have been unable to gain serious ground in recent weeks.
On-chain data points to institutional accumulation

One factor that could support Bitcoin in the near term is the sheer amount of institutional exposure to the market at this point.

The CEO of analytics platform CryptoQuant is now watching transactions flow to OTC-related wallets from Coinbase.

„A few hours ago, 12,006 BTC flowed out of Coinbase. As I said, it went to custody-like wallets. It seems Coinbase is making a new cold wallet for every customer after the OTC deal for institutions. I’m very bullish on BTC.“

These types of institutional accumulation trends usually take place days before the cryptocurrency price spikes rapidly.

JPMorgan on MassMutual’s Bitcoin purchase: crypto demand on the rise

Even a small investment from insurance companies and pension funds could be significant for Bitcoin.

MassMutual’s $100 million purchase of Bitcoin (BTC) shows that demand for cryptocurrencies will continue to grow, according to strategists at major investment bank JPMorgan.

In a note to investors on 11 December, JPMorgan strategists, including Nikolaos Panigirtzoglou, said bitcoin adoption will now expand from family businesses and high-net-worth investors to larger investors, such as insurance companies and pension funds.

As Bloomberg reported, the experts said it was unlikely Crypto Revolt that insurance companies and pension funds would invest large amounts in Bitcoin. But even a small shift towards crypto could be significant.

If pension funds and insurance companies in the United States, the eurozone, the United Kingdom and Japan invested 1 per cent of their assets in bitcoin, bitcoin demand would grow by $600 billion, the strategists calculated. That is almost twice the market capitalisation of Bitcoin. This currently stands at 356 billion US dollars, according to data from CoinMarketCap.

The JPMorgan strategists wrote: „MassMutual’s Bitcoin purchases are another milestone in Bitcoin acceptance by institutional investors. […] One can see the potential demand that could emerge in the coming years as other insurance companies and pension funds follow MassMutual’s lead.“

Massachusetts-based insurance company MassMutual announced on 11 December the firm had bought 100m in bitcoin and added it to its general investment account. MassMutual told Cointelegraph that the investment was part of an overall strategy. The aim of this strategy, it said, was to „achieve measured but meaningful exposure to a growing economic aspect of our increasingly digital world.“

In addition to MassMutual, MicroStrategy, a large institutional firm, has also bought Bitcoin. The company announced it would raise $400 million in a securities offering to invest the money in BTC. MicroStrategy has made Bitcoin its primary asset after buying US$425 million worth of Bitcoin in August and September.