On Feb 15, the Bitcoin price created a bearish engulfing daily candlestick and broke down from its long-term ascending support line. It has been decreasing since.
Bitcoin Price Highlights
- The Bitcoin price broke down from a parabolic ascending support line.
- The price also broke down from a short-term ascending channel.
- A golden cross is about to transpire.
- There is minor support at $9,750 and major support between $9,000-$9,200.
Long & Short-Term Breakdown
On Feb 15, the Bitcoin price broke down from the parabolic ascending support line it had been following since Dec 15, 2019. An interesting thing to point out is that the Feb 13 high coincided perfectly with that reached on Oct 23, 2019, prior to a significant price decrease.
While there is support at $9,500, the most significant support area is found between $9,000-$9,200. Besides having acted intermittently as support and resistance, this area is supported by the inevitable bullish cross between the 50 and 200-day moving averages (MA), which is slightly below this support area.
In the short-term, the price broke down from an ascending channel. The breakdown did not transpire with significant volume.
Currently, the price has reached the minor support area of $9,750 and has made what resembles a double bottom inside it.
Future Movement
With the use of the hourly chart, we can see that BTC is trading inside a descending wedge. While we could first see a breakout in the form of a relief rally towards $10,000, the price is expected to decrease and reach the previously mentioned support area at $9,000-$9,200. This hypothesis is supported by the bearish cross of the 50 and 200-day MAs since both are currently offering resistance to the price.
To conclude, the Bitcoin price broke down below an ascending support line, possibly signalling an end to an upward move that has been going on for almost two months. While a short-term upward move is likely, the price will most likely eventually fall to $9,000-$9,200. The long-term outlook remains bullish, and Bitcoin looks poised to reach new highs throughout 2020.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
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 Conditions, Privacy Policy, and Disclaimers have been updated.
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)
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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