![Bitcoin Analysis for 2020-01-31 [Premium Analysis]](http://s32659.pcdn.co/wp-content/uploads/2019/12/BIC_btc_diamond_luxury.jpg)
2020-1-31 12:10 |
The Bitcoin price has broken out above a short-term ascending triangle. The breakout was short-lived and the price has been decreasing since reaching a high of $9,550.
Bitcoin Price Highlights The Bitcoin price broke out from an ascending triangle. The RSI predicts a downturn. It may be in the fifth, and final wave, of an Elliott formation. There is resistance at $9,600 and $11,100. There is support at $9,100. Ascending TriangleThe Bitcoin price has been following an ascending support line since Jan 26. In the period of time after Jan 29, it also followed a horizontal resistance line, creating an ascending triangle in the process.
Yesterday, the price broke out from this triangle. Interestingly, it initially broke down prior to doing so, only to reverse immediately and create a considerably long lower wick in the process.
However, the breakdown was short-lived. After reaching a high of $9,550, the price reversed. Since then, it has decreased below the ascending support line.
Failure Swing TopAfter generating bearish divergence, the two-hour RSI has successfully completed a failure swing top by moving below the valley between the two divergence highs.
But, it is still trading above the 50-line, something it has done since the creation of the ascending support line. The most likely move from here would be a validation of the RSI low (dashed line) followed by a decrease below the 50-line.
As for the price, this movement would initially cause the price to move upwards and validate this support line before falling to the closest support area at $9100.
Elliott FormationThe Bitcoin price is likely in the final wave of a five-wave Elliott formation.
In addition, we can see that the aforementioned ascending support line has traced the entire fifth wave, so the breakdown below it could indicate its completion. The price could decrease and validate the parabolic ascending support line before bouncing upward.
To conclude, Bitcoin has possibly completed the final wave of a five-wave Elliott formation. A correction back to the $9,100 level is likely.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
The post Bitcoin Analysis for 2020-01-31 [Premium Analysis] appeared first on BeInCrypto.
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