This week, Bitcoin (BTC) and Ether (ETH) suffered several rejections despite numerous attempts to hike. The resistances do not let anything pass, which raises fears of a further drop in prices in the coming days. The point about the different scenarios to consider.
New rejection of Bitcoin price on Daily Kijun
Bitcoin (BTC) price attempted another rally this week after multiple bounces from the low of the $ 18,500 range. But this systematically failed attempt, the bottom of the cloud and the Kijun Daily at $ 20,500 (in purple) representing an important resistance level and defended by sellers.
Figure 1: Bitcoin Daily Price Chart
Still clearly flat, the price of Bitcoin therefore remains bearish with increasingly lower peaks. We should climb above the cloud at $ 22,500 at the close to be bullish again (at the break of the cloud), and it is this resistance that is preventing BTC from taking off again.
For the time being and as long as the price and the Chikou Span (blank) remain below all these obstacles, Bitcoin is expected to continue to droptowards the targets triggered by the breakout of the lower trendline of the yellow pattern.
Indeed, an ascending wedge and a bear flag it had previously been broken from belowwith their respective goals at $ 16,130 and $ 14,400. As long as these resistances remain, it is advisable to look for bearish signals on the chart, in order to obtain achievable objectives in the coming days or weeks.
However, hope for a rebound remains possible as long as the price holds the bottom of the range at $ 18,400. On the other hand, if we were to lose this level, we would have a breakout of the range which would precipitate the fall towards our bearish targets.
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Ether (ETH) is still stuck in the middle of its range
Like Bitcoin, the price of Ethereum (ETH) remains bearish and continues its evolution in range, always with lower and lower floors. Breaking the previous high at $ 1,800 and the cloud would be a possible turnaround signal. In the meantime, in the analysis the bearish positions are to be favored since the price remains blocked under numerous resistances.
Figure 2: Ether Price Chart (Daily)
Although the price manages to hold steady in the middle of the daily range, the selling pressure remains and we still don’t have a new breakout in favor of a bullish return.
Located under the Kijun and under the Ichimoku cloud (with the Chikou Span under the recently broken Rising Wedge) it seems more likely that the price will break through the bottom of the range in the next few days or weeks, towards $ 760.
However, the hope of a rebound will remain possible as long as the price moves inside the blue rectangle (daily range). The $ 1,000 level must therefore absolutely be defended.
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Conclusion of this technical analysis
Bitcoin and Ether undergo at each new rebound test the sales force of the mid-range that does not allow for the moment to obtain bullish breakouts of the structures.
As long as the price remains in a downtrend and then under the Ichimoku system, bearish targets will therefore be preferred.
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Sources of the chart: Trading View
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