Bitcoin Technical Analysis February 9th

Bitcoin (BTC) broke above its short-term pattern on Feb. 7 but was rejected by the nearest Fib resistance the next day. Attempts are currently being made to find support.

The doji candle is at strong resistance

Bitcoin hit a local high of $45,492 on Feb. 9 before falling.

The decline comes after being rejected by the 0.618 Fib retracement resistance level as the recent part of a (highlighted) bearish move was measured at $44,720. It then creates a bar of doji (red icon), which is generally considered a sign of indecisiveness due to its long upper and lower wicks.

The next supports are found at $40,725 and $39,250. These are the 0.382 and 0.5 Fib retracement support levels (white).

BTC/USDT daily chart | Source: TradingView

Breakthrough

The two-hour chart shows Bitcoin breaking out of an ascending parallel channel that had previously been in place since January 24th.

It is currently validating the channel’s resistance line as support (green icon). If successful, this should lead to a continuation of the upward movement towards new highs.

BTC/USDT 2 hour chart | Source: TradingView

Count waves

Based on the shape of the current bullish move, BTC’s most likely long-term wave number suggests a bottom has been reached.

As for the short-term wave count, it looks like Bitcoin is about to complete a pullback that contains wave 4. 0.5 at $41,920 and $40,800 respectively.

Accordingly, a continuation of the upward trend can be expected.

BTC/USDT 2 hour chart | Source: TradingView

The number of alternating waves indicates the formation of a triangle containing wave 4. On this possibility, BTC will not break into the channel and instead will continue to confirm the channel’s resistance line and consolidate before the breakout.

Hourly BTC/USDT 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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