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Bitcoin Analysis for 2020-02-05 [Premium Analysis]

2 mins
Updated by Kyle Baird
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The Bitcoin price has broken out from a descending channel and is moving upwards towards resistance.

Bitcoin Price Highlights

  • The Bitcoin price broke out from a descending channel.
  • There are minor supports and resistances at $9,150 and $9,600.
  • The price is in the process of completing a morning star pattern.
  • There are long-term supports and resistances at $7,500 and $9,500.

Channel Breakout

The Bitcoin price has created a support area near $9,150.  Once the price got there, it created long lower wicks and moved upwards and also did the same yesterday. In addition, the upward move caused the price to break out from a descending channel. The price is currently moving towards the resistance area of $9,600. Bitcoin Descending Channel

Morning Star Pattern

The daily chart reveals that the price is in the process of completing a morning star pattern. BTC first created a bearish engulfing candlestick on Feb 3, following it up with a Doji the next day and is currently making a bullish engulfing candlestick. A price close above $9,300 would successfully complete the pattern, suggesting that the price will move upwards instead of correcting. Bitcoin Morning Star The price has also seemed to bounce off the curved ascending support line it has been following since Dec 16, 2019. There is a minor support area close, so even if the price breaks down, it is expected to bounce near $8,850 and then move towards the resistance at $9,600. Ascending Support

Long-Term Range

In the long-term outlook, the price is trading inside support and resistance areas of $7,600 and $9,500, respectively. It is currently inside the resistance area. Therefore, while the price is likely to reach the resistance area at $9,500, there is no guarantee that it will break out. Rather, a retracement followed by an attempt at breaking out would be more sustainable for the price in the long-run. Bitcoin Trading Range To conclude, the Bitcoin price broke out from a short-term descending channel and is moving upward. While BTC will likely reach the minor resistance area at $9,600, a breakout above this resistance will be difficult. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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