Bitcoin Analysis for 2020-02-10 [Premium Analysis]

Bitcoin Price Highlights

• The Bitcoin price has broken out above $10,000.
• It is following a parabolic ascending support line.
• There is resistance at $10,400 and $11,500.
• There is support at $9,500.
• The 50 and 200-day moving averages (MA) are close to making a bullish cross.

Bitcoin Weekly Outlook

Last week, the BTC price created a bullish engulfing candlestick that went firmly above the $9,500 support area and reached a close of $10,151. The next resistance areas are found from the previous price closes at $10,400 and $11,500. In addition, the weekly RSI is firmly above the 50-line and moving upwards, a strong bullish sign that indicates that the price is in an upward trend.

Parabolic Ascending Support

The Bitcoin price has been following a parabolic ascending support line since Dec 16, 2019. Besides the previously mentioned resistance levels, there is also minor resistance at $11,000. The support line has become very steep, and if the price continues to follow it, it could reach the $11,000 area within 10 days. Technical indicators and price movement show strength. First, the price decreased and validated the support line before creating a long lower wick and quickly moving upwards. In addition, the 50 and 200-day moving averages (MA) are very close to making a bullish cross since the former is moving upwards with strength. Finally, while the RSI is indeed overbought, it has yet to generate any type of bearish divergence at all. Therefore, the assumption can be made that the price will continue to move upwards.

Future Movement

In the short-term, the Bitcoin price made a double-top and fell sharply amid a bearish engulfing candlestick. However, that only served to validate the possible ascending support line that the price is following along with the $9,800 minor support level. So, the price is expected to continue moving upwards at least until it reaches the resistance levels outlined previously. To conclude, the Bitcoin price has broken out above $10,000. It will likely continue its upward movement until it reaches at least one of the significant resistance areas. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.