Recently, the wavelet transform has been widely applied in the watermarking research due to its excellent property of multi-resolution analysis. This article proposes an adaptive watermarking capacity analysis in the wavelet domain. This is different from most previous works that focused on spatial domain. This article discusses the relationship between the watermarking capacity and the watermark detection bit error rate (BER), and derives the relation between the capacity and the bounds of BER. Based on this research, the detection error rate of watermark is mainly influenced by the watermark average energy and the watermarking capacity. The error rate rises with the increase of watermarking capacity.