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.