FX.co ★ Wave analysis for BTC/USD on December 15, 2021

The main news from the world of cryptocurrencies:

Ark Invest founder Cathie Wood said in an interview with CNBC that Bitcoin's price can grow significantly due to the activity of institutions. She said that Bitcoin could reach a value of $550,000. According to her, such investors are looking for opportunities unrelated to traditional asset classes and are switching to cryptocurrency right now. The reason why this is happening is that a new asset class with correlations is different from other assets. If the institutions allocate about 5% of their portfolio to bitcoin, it will add $500,000 to its current price. The founder of ArkInvest also added that institutional managers should look at new asset classes with low correlations, which is the key to diversification and the holy grail in terms of asset allocation.

Now, let's continue to consider Bitcoin from the viewpoint of the Elliott theory on the hourly timeframe.

BTC/USD, H1 timeframe:

The formation of a downward simple zigzag [A]-[B]-[C] can be observed. Within the framework of this zigzag, only the first wave [A] is fully completed, which is a bearish impulse consisting of five main sub-waves (1)-(2)-(3)-(4)-(5). After the completion of this impulse, the price reversed and started to rise, forming an upward correction wave [B]. This correction has a complex internal structure, and most likely takes the form of a double zigzag (W)-(X)-(Y). Since the first two sub-waves (W) and (X) already look completed, we should expect growth in the last sub-wave (Y) to 55050.00 in the near future. This level is determined using the Fibonacci line tool, where the value of wave [B] will be 50% of wave [A].

Trading recommendations:

It is recommended to buy from the current level and take profit at 55050.00.