The Bitcoin price has created two short-term long lower wicks, indicating that there is buying pressure that is targeting a push towards $9,600. It is possible that Bitcoin eventually breaks out and reaches $10,500.
Highlights
Sponsored- There is resistance at $9,600 and $10,500.
- There is minor support at $9,150.
- BTC is following a parabolic ascending support line.
- It may be in the fifth and final wave of an Elliott formation
Well-known trader @MacnBTC outlined the Bitcoin price, stating that the direction of the future movement depends on if Bitcoin drops or increases from this middle ground that it has been in.
If Bitcoin “Gets Lows First”
Sponsored SponsoredSince the tweet, the price got the lows first. Thus, if we go by the prediction of the tweet, BTC will soon move towards the resistance of the range.
A bullish development comes from the fact that once the price reached the minor support area of $9,150, it created a long lower wick and then moved upwards. This is a bullish sign that indicates that there is buying pressure at the support area.
The same thing occurred on Jan 30, when the price created a similarly long lower wick. In addition, the highest two-hour volume has been recorded in these two candlesticks. Going by this, we can make the assumption that the tweet’s prediction was correct, and BTC will move inside the resistance area.
Future Movement
The Bitcoin price has been following a parabolic ascending support line since Dec 16, 2019, and has reached the minor resistance area of $9,600.
While the RSI is in overbought territory, it has yet to generate any bearish divergence to indicate a breakdown.
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In BeInCrypto’s previous analysis, it was stated that the BTC price is following one of two possible Elliott formations, with the only exception being the length of the fifth wave.
The current movement makes it more likely that the correct scenario is outlined in blue below, in which the fifth wave extends all the way to $10,500. The reason for this is the lack of rejection at the $9,600 area, which should have been very swift if it was the end of the formation.
In addition, the buying pressure makes it likely that the price wants to continue moving higher. If the price breaks out above $9,600, the rate of increase should accelerate quickly afterward, as is customary in the fifth wave of this formation.
To conclude, the Bitcoin price has rejected two attempts at breaking down. It seems that it will soon reach the resistance area at $9,600 and possibly break out higher.
Uphold