The Bitcoin price increased significantly on Jan 27 after reaching a 2020 high of $9,169. It moved above its 200-day moving average (MA) and looks ready to move towards the $9,600 target.
Bitcoin Price Highlights
- The Bitcoin price is following a curved ascending support line.
- It has moved above its 200-day moving average.
- It is possibly in the fifth and final wave of an Elliott formation.
- There is resistance at $9,600.
Bitcoin Moving Averages
The Bitcoin price increased significantly yesterday, creating a bullish engulfing candlestick in the process.
In addition, it has moved above its 200-day MA (black), a very significant bullish development. This MA rejected the price on Jan 19 and initiated the downward move that led to $8,200.
The closest resistance area is found at $9,600, while the closest support area is found near $8,000, strengthened by the 100-day MA.
Wave Count
The BTC price has been following a curved ascending support line, on which it bounced yesterday near $8,200. If the price continues following this line, it could soon reach $9,600.
In addition, it looks as if the price is in the process of completing a five-wave Elliott formation. Currently, the price is in its fifth wave. A likely place for the wave to end would be at the resistance area previously outlined at $9,600.
The price has yet to show any weakness. While the RSI is oversold, it has not generated any bearish divergence, not even in lower time-frames.
Therefore, the price is expected to continue moving towards $9,600. A more bearish scenario would have the price validating the ascending support line near $8,800 once more before continuing its upward movement.
To conclude, the Bitcoin price increased above its 200-day MA. This increase will likely continue at the rate provided by the support line until the price reaches $9,600.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
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