The Bitcoin price has been continuing its ascent. It looks likely to soon reach the resistance area near $9,600. A breakout above this area would greatly accelerate the rate of increase and could possibly even take the price to $11,000.
Bitcoin Price Highlights
- The Bitcoin price is following a curved ascending support line.
- It may be in the fifth and final wave of an Elliott formation.
- There is resistance at $9,600 and $11,100.
- There is support at $9,100.
The Bitcoin price has been following a curved ascending support line since Dec 17, 2019.
The price movement closely resembles a five-wave Elliott formation, of which the price is likely in the fifth and final wave. Since the closest resistance area is found at $9,600, that would be the level in which the current wave and formation could finish.
In the short-term, the RSI has begun to show some weakness, albeit not a very significant one. The most likely move would be a continuation of the current trajectory. The price could reach the resistance area near $9,600 followed by a decrease towards $9,100, possibly validating the ascending support line once more.
As long as the ascending support line is intact, the price is expected to continue increasing.
The daily chart better reveals the importance of the $9,600 area, which is the previous breakdown level. In addition, the very rapid upward movement of Oct 25 and 26, 2019 failed to reach a daily close above this area.
If the price were to increase above this resistance, which is still uncertain, the rate of increase would likely accelerate and cause BTC to reach the next resistance area at $11,000 by the middle of February.
Finally, the price has clearly moved above the 200-day moving average (MA).
To conclude, the Bitcoin price has continued its increase and is aiming for $9,600. The next resistance area is found at $11,000. If the price continues following the current ascending support line, it could reach this area by the middle of February.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.