Over the past week, the Bitcoin price has risen significantly and created a bullish candle. However, it was unable to close above a strong resistance area. Currently, it seems that Bitcoin will soon cross this resistance zone while remaining the current support line.

Highlights of Bitcoin price

  • Bitcoin price is trading above the 50-week MA.
  • There is the long-term resistance at $ 9,350.
  • There is long-term support at $ 7,450.
  • The price is following an ascending parabolic support line.

Weekly prospects of Bitcoin

Last week, the Bitcoin price increased significantly and created a bullish engulfing candle in the process. However, the price could not close above the previous breakout of $ 9,350. A close above this level will allow the price to move towards a high above $ 13,000.

Currently, the price is trading above the 50-week MA. So, although it is facing a strong resistance, the weekly outlook is still bullish.

The main support area is found at $ 7,450.

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Weekly BTC / USD chart | Source: TradingView

Parabolic support

Bitcoin price has been following the ascending parabolic support line since December 17, 2019.

Bitcoin's price movement closely resembles the five-wave Elliott model. Currently, the price is likely in the fifth wave of this model.

We see two ways for formation to be open. First, the price bounced back on the parabolic support line and quickly climbed to $ 10,400 to complete the fifth wave, or the price broke through the parabolic support line and began falling rapidly to $ 8,000.

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Daily BTC / USD chart | Source: TradingView

In the short term, the price has twice reacted strongly to the support at $ 9,200, creating two long lower wicks piercing the area and then moving up again. The 200 MA line is now also located around the $ 9,200 area, which makes the $ 9,200 area even more certain.

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However, the price created a similar long upper shadow later when it made a failed breakout attempt. In addition, the RSI has created a bearish divergence but remains above 50.

This shows that the bulls and the bears are fighting fiercely at the current price zone, and a break out of this zone could change the landscape of the market.

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BTC / USD chart with 4-hour frame | Source: TradingView

Future movement

Of the two results mentioned above, the bullish scenario has a better chance of trading, mainly because the current trend is an uptrend and the disadvantages shown on the chart are not enough to predict bearish. .

Therefore, the price can drop to retest the ascending parabolic support line, followed by a rise above $ 10,000.

Placing a stop loss at $ 9,000 in long positions will help investors minimize losses but still allow profits in case of price increases.

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Daily BTC / USD chart | Source: TradingView

Conclude

The price of BTC has reached a very important resistance level, and it will likely succeed in moving across the area towards the $ 10,000 level.

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

Sn_Nour

Bitcoin Magazine | Beincrypto

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