Bitcoin Analysis for 2020-02-12 [Premium Analysis]

Bitcoin Price Highlights

• The Bitcoin price is following a parabolic support line.
• It is nearing the end of the fifth and final wave of an Elliott formation.
• There is resistance at $11,000.
• The price is possibly following a short-term ascending resistance line.

Elliott Formation

On Feb 11, the Bitcoin price bounced on the parabolic support line it has been following since Dec 15, 2019, and created a bullish engulfing candlestick, reaching a close above yesterday’s high. This movement also served to validate the $9,500 area as support. Bitcoin is likely in the fifth and final wave of an Elliot formation, which could end near $11,000. The decreasing volume since the third wave supports this possibility. Looking closer at the fifth wave, we can outline five sub-waves within (green). Yesterday’s increase marked the end of the fourth wave, and now we can see that the price is in the fifth sub-wave of the final wave, indicating that a top could be near before the price begins a corrective period. This movement is supported by the RSI, which has generated bearish divergence in both the short and the long-term. However, the RSI has yet to decrease below 50 since beginning the larger fifth wave (blue). As long as it stays above 50, we can assume that the price is still bullish.

Ascending Resistance

In the short-term, it is likely that BTC is following an ascending resistance line. If it keeps increasing at the rate predicted by the line, it will reach the $11,000 resistance area by Feb 18 at the latest. The line is expected to be valid since it has been touched four times. To conclude, the Bitcoin price initiated a strong increase on Feb 11, which is likely a part of the fifth and final wave of an Elliott Formation, which could end near $11,000. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.