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.
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.
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.
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.
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.
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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