Bitcoin Price Technical Analysis for 19/2/2015 – Rising Support

Bitcoin price took a dive yesterday to reach a low of around $230.85 before heading upwards again to score a high of about $240.5 at the time of writing of this analysis.

By studying the 1 hour Bitfinex (BTC/USD) charts from tradingview.com and plotting the 20 hour EMA (look at the below chart), we can notice that bitcoin price stopped falling at around $230, so we can see the support level rising gradually from the previous $220 level, which also proves that yesterday’s drop was nothing more than an attempt at price correction following the bullish wave that started on the 16^th of January. This can also be proven by the fact that the downward price correction wave wasn’t strong enough to take bitcoin price to the low levels recorded on the 16^th of January. Today’s upward wave was characterized by a repititive pattern characterized by a bullish rally forming 3 bullish candles on the 1 hourly chart, followed by 1-2 bearish candles. At the present moment, we can see 3 successive bullish candles and the price is above the 20 hour EMA curve. If the trading pattern leads to 4 successive bullish candlesticks, it is likely to see bitcoin price rise to test the $256 resistance level  within around 24 hours.

By studying the 4 hour Bitfinex (BTC/USD) charts from tradingview.com and plotting William’s Alligator indicator accordingly (look at the below chart), we can notice the following:

• The uptrend starting on the 16^th of January is beginning to become more prominent as shown by the green trend lines on the following chart and the rising support level from $220 to around $230.
• The alignment of the moving averages of William’s Alligator indicator are still not perfect for a stronger bullish stampede, so if this changes within the next few hours, we can see higher values soon.

Conclusion:

Bitcoin price began rising today after falling yesterday. Rising support level is proving that we are yet to see the price reach higher levels.

Charts from Bitfinex