This week, Bitcoin (BTC) and Ether (ETH) are looking to preserve their short-term bullish momentum. However, cryptocurrencies remain under strong resistance which could still block further upside potential. What are the different scenarios to consider for the next few days?
Bitcoin (BTC) is testing its resistance
Again, the bitcoin price (BTC) is under considerable resistance which is preventing it from rising. Although the price has regained bullish momentum in the short term, the movement will remain fragile as long as it continues at the bottom of the range that we have been monitoring for several months (blue rectangle).
To return to being truly bullish over the medium term, it will be necessary to wait for the price to return to the high end of the range around $ 21,600. because until then, the upper trendline of the orange pattern and the middle of the range could bring the price back below the range to $ 18,500. In fact, the middle of the range acts as a strong resistance.
Figure 1 – Bitcoin Daily Price Chart
The orange pattern is an increasing magnification, the odds would rather be on the side of a rejection either from the high trendline towards $ 21,500, or from Tenkan Daily to the current level.
In any case, we will have to look at the breakout which will give us the direction of the next move. We rather prefer the decline because the market structure also remains bearish with lower and lower highs. If the price breaks through the resistance above, then we may revisit the price by looking for the top of the range towards $ 24,500..
However, if the pattern breaks from below, BTC should test its support at $ 18,500 again with the risk this time of breaking the range from the low to $ 16,100 (the target breakout of the Rising Wedge in yellow).
Figure 2 – Bitcoin Weekly Price Chart
To conclude this bitcoin analysis, Weekly’s Ichimoku gives us a lot of resistance that we will have to win back.
As a reminder, a first sign of a reversal would be to return to Kijun Weekly at close. But all flat Tenkan and Kijun are hard levels to iron, it will first need to be vigilant below $ 21,655, then $ 24,966, which could drive the price to new lows.
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Ether (ETH) is still blocked
The price of Ether (ETH) remains stuck between two Tenkan Weekly apartments at $ 1,624 and $ 1,478 and will have to break one of the two to give us the meaning of the next move.
If ETH regains these two support resistances, the price should finally rally to the top of the $ 2,000 range. But as long as the price remains below the Weekly Resistance, we should rather favor a breakout to the bottom of the $ 1,000 range.
Figure 3 – Ether Price Chart (Daily)
Despite the bullish rebound of the past few days, this upside looks more like a correction before a new dip as Ether is still moving in its bearish range, with increasingly lower highs. Recall that the breakout of the Rising Wedge to yellow triggered a bearish target at $ 762, a target that still holds true.
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Conclusion of this technical analysis
Bitcoin and Ether remain under significant resistance Weekly and it could be declined in the next few days to get the objectives already activated. We will have to wait for confirmations of bullish breakouts to invalidate the targets which remain bearish for the moment.
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Sources of the chart: TradingView
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