Bitcoin Analysis for 2020-02-11 [Premium Analysis]

Bitcoin Price Highlights

• The Bitcoin price has broken down from a short-term support line.
• The hourly RSI is bearish.
• There is support at $9,500 and $9,700.
• The price is nearing the end of the fifth and final wave of an Elliott formation.

Short-Term Support

The Bitcoin price had been following an ascending support line since Feb 6. Last night, the price dropped below this support line and continued to decrease. In addition, the hourly RSI is below 50, suggesting that the short-term movement is bearish. The closest support area is found at $9,500, which was the previous breakout level. If it cannot soon reclaim the ascending support, it will likely fall back to this previous resistance. In addition, there is another minor support area at $9,700. This is supported by the presence of the 200-hour moving average (MA), in which the price has been trading above since breaking out from the $9,500 area. Thus, it is possible that the price reverses here instead of dropping all the way to $9,500.

Long-Term Movement

The daily chart shows the significance of the $9,500 level that the price just broke out from. In addition, it coincides with the parabolic ascending support line. Finally, the RSI has yet to generate any type of bearish divergence, so we can make the assumption that the price will soon bounce and head towards $11,000. Since the beginning of the ascending support line, the price movement very closely resembles that of a five-wave Elliott formation. The price is currently in the fifth and final wave of this formation, a wave that began on Jan 25. The $11,000 target is given when using a fib retracement tool for the entire length of the fourth wave, making this a very likely place for the end of the move. A decisive daily close below $9,400 would invalidate this possibility and indicate that the real correction has begun. To conclude, the Bitcoin price is likely in the fifth and final wave of an Elliott formation. The current short-term decrease will likely end soon to make an attack towards $11,000. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.