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

2 mins
Updated by Kyle Baird
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On Feb 5, the Bitcoin price created a bullish engulfing candlestick and is in the process of breaking out above a significant resistance area.

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. Bitcoin Parabolic Support 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. Bitcoin Elliott Formation

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. Bitcoin Short-Term 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.
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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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