Bitcoin shows bullish momentum, has broken out above a descending resistance line

Bitcoin had been decreasing underneath a descending resistance line since reaching an all-time high price on Nov 10. The downward move led to a local low of $32,917 on Jan 24. BTC has rebounded since then and has been moving upwards.

After three unsuccessful attempts (red icons), BTC finally managed to break out over the descending resistance on Feb 4, creating a large bullish candlestick. This also caused it to move above the $40,800 horizontal resistance area in the process. The area is now expected to act as support.

The closest resistance areas are found at $46,780 and $51,000. These targets are the respective 0.382 and 0.5 Fib retracement resistance levels.

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