![Bitcoin Analysis for 2020-01-09 [Premium Analysis]](http://s32659.pcdn.co/wp-content/uploads/2019/01/bic_bitcoin_birthday.jpg)
2020-1-9 12:26 |
\nBitcoin Price Highlights The Bitcoin price has broken down below its parabolic curve. There is minor support at $7900 and major support at $7550. BTC is possibly following an ascending support line. It is trading above its 100- and 200-hour moving averages. The daily chart has begun to show weakness. Parabolic Bitcoin Curve
Since beginning the current upward move on December 7, Bitcoin’s rate of increase had become parabolic. On January 8, the BTC price broke down below this parabolic support curve.
The breakdown transpired with below-average volume. As soon as the price reached the previous resistance area at $7900, it created a long lower wick and validated it as support. The price is still trading inside this area.
Ascending SupportCurrently, it seems as if the price is following an ascending support line. In addition, we can see that the aforementioned minor support area coincides with the 0.382 Fib level and the 100-hour moving average (MA).
In case the price breaks down from this support line, the most probable area for a reversal would be found at $7550, the 0.618 Fib level, and the 200-hour MA.
If the Bitcoin price does not break down from this support line, which seems likely due to the MA support, we believe it could increase towards the $8400 range and make a triple top. The presence of bearish divergence on a higher time-frame could dictate whether the price will continue upward or decrease.
Bearish HaramiIn the daily chart, the BTC price created a long upper wick and what seems like a bearish harami. The current daily candle is shaping up to be bearish and could complete an evening star pattern with a price close below $7800.
In addition, the proposed triple top scenario followed by a decrease would create a second long upper wick, a definite sign of weakness and selling pressure that suggests that the price will move downwards to retest the previous breakout level.
To conclude, the BTC price broke down below from its parabolic growth curve. The rally that began on December 3 has begun to show weakness and we believe a top will be reached soon.
Good luck and happy trading! For our previous analysis, click here.
The post Bitcoin Analysis for 2020-01-09 [Premium Analysis] appeared first on BeInCrypto.
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