The Bitcoin price increased significantly on Jan 27 after reaching a 2020 high of $9,169. It moved above its 200-day moving average (MA) and looks ready to move towards the $9,600 target.

Bitcoin Price Highlights

  • The Bitcoin price is following a curved ascending support line.
  • It has moved above its 200-day moving average.
  • It is possibly in the fifth and final wave of an Elliott formation.
  • There is resistance at $9,600.

Bitcoin Moving Averages

The Bitcoin price increased significantly yesterday, creating a bullish engulfing candlestick in the process.

In addition, it has moved above its 200-day MA (black), a very significant bullish development. This MA rejected the price on Jan 19 and initiated the downward move that led to $8,200.

The closest resistance area is found at $9,600, while the closest support area is found near $8,000, strengthened by the 100-day MA.

Wave Count

The BTC price has been following a curved ascending support line, on which it bounced yesterday near $8,200. If the price continues following this line, it could soon reach $9,600.

In addition, it looks as if the price is in the process of completing a five-wave Elliott formation. Currently, the price is in its fifth wave. A likely place for the wave to end would be at the resistance area previously outlined at $9,600.

The price has yet to show any weakness. While the RSI is oversold, it has not generated any bearish divergence, not even in lower time-frames.

Therefore, the price is expected to continue moving towards $9,600. A more bearish scenario would have the price validating the ascending support line near $8,800 once more before continuing its upward movement.

To conclude, the Bitcoin price increased above its 200-day MA. This increase will likely continue at the rate provided by the support line until the price reaches $9,600.

For those interested in BeInCrypto’s previous Bitcoin analysis, click here.

Valdrin Tahiri

Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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