Bitcoin Technical Analysis February 7th

Bitcoin (BTC) has been on the rise since January 24th and finally broke through a key resistance area on February 4th.

Important resistance zone

Bitcoin has fallen below the descending resistance line since hitting an all-time high on Nov. 10. The move down led to a local low of $32,917 on Jan. 24. BTC has since recovered and is growing.

After three failed tests (red icon), Bitcoin finally broke the descending resistance line on Feb. 4 and created a major bullish candlestick. The move also helped the price move above the $40,800 horizontal resistance area. This zone should now act as a support.

The next areas of resistance are $46,780 and $51,000. These targets are the 0.382 and 0.5 Fib retracement resistance levels, respectively.

BTC/USDT daily chart | Source: TradingView

Current model

The six-hour chart shows Bitcoin trading within an ascending parallel channel since the aforementioned Jan. 24 low.

It is currently breaking the ascending resistance line (green circle). A break above it or a rejection will help set the direction of the short-term trend.

BTC/USDT 6 hour chart | Source: TradingView

Technical indicators

Bitcoin technical indicators on the daily timeframe are bullish and support the continuation of the uptrend. This is visible in both the RSI and MACD.

The RSI, which is a momentum indicator, has moved above the 50 level, which is taken as a sign of an uptrend.

The MACD, formed by the short-term and long-term moving averages, is in positive territory. when this happened in earlier times, a clear upward movement followed.

Indicators on the daily timeframe are suggesting that Bitcoinwill break the parallel channel. In that case, BTC is likely to rally towards the $46,780 and $51,000 resistance levels outlined above.

BTC/USDT daily chart | Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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