Bitcoin Analysis for 2020-02-06 [Premium Analysis]

Bitcoin Price Highlights

• The Bitcoin price is in the process of breaking out above major resistance.
• It is following a parabolic ascending support line.
• There is resistance at $9,600 and $11,000.
• Short-term indicators support a price increase.

BTC Breakout Attempt

The Bitcoin price has been following an ascending parabolic support line since Dec 16, 2019. On Feb 5, the price bounced on this line and created a bullish engulfing candlestick on relatively high volume. At the time of publishing, Bitcoin was making an attempt at breaking out above the $9,600 resistance area, below which it has been trading since September 2019. If successful, the price could accelerate its rate of increase and quickly move towards the next resistance area at $11,000. This is likely the fifth and final wave of an Elliott formation that began on Dec 16 and could end near $11,000. Inside this fifth wave, the price has finished the second sub-wave and is in the process of creating a third.

Short-Term Movement

The short-term outlook gives more credibility to the bullish scenario on the daily chart. First, we can see that the price has flipped the main resistance area as support and initiated a bounce after. In addition, the hourly RSI has broken out above a long-term bearish divergence trend-line. Finally, the relatively short-term 50 and 200-hour moving averages have just made a bullish cross, indicating that the price wants to move upwards. To conclude, the Bitcoin price made an effort to move above a very significant resistance area. While it has yet to clearly flip it as support, it will likely do so in the near future and accelerate its rate of increase towards $11,000. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.