Bitcoin (BTC) and Ether (ETH) prices exploded this week. The hope for a short-term bullish recovery is back but after such a strong rally, what are the different scenarios to watch? The point in this new technical analysis of the cryptocurrency market.
Bitcoin (BTC) facing a big wall of resistance
After having evolved steadily for long weeks, the price of Bitcoin (BTC) has skyrocketed, recovering +12.5% of its value in one week. Now, its price is trying to break through a sizable resistance zone as it is the $19,000/$20,000 area that provided support during the long run from June to November 2022.
Figure 1 – Bitcoin daily price chart
While this increase is encouraging and is approaching key levels, Bitcoin still remains in a downtrend with ever lower peaks. We also see it the price surgically stumbles both on the daily trendline but also on the 0.618 Fibonacci level.
More, this $19,000 area is exactly the bottom end of the 6-month old range. As a reminder, any broken support will become resistance, so the price is likely to see a rejection in the coming days and correct, at least temporarily.
If the price were to confirm the range reintegration by, for example, pulling back to the top of the ichomoku cloud, then there is a strong likelihood that the price would then seek the Kijun Weekly at 20,360, or even the middle from the daily range at $ 21,500. This rise must be done in stages to consolidate the various supports and be able to accumulate as much liquidity as possible in order to break this huge wall of resistance.
Otherwise, if the price fails to stay within the range, it should re-test its support at $15,800. At that moment it will be imperative to maintain this level, otherwise there will be strong risks of seeing the price fall towards the Bear Flag target which is still active at $14,300.
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A reversal pattern for Bitcoin (BTC) in h4?
By linking local maxima and minima together, the price of BTC shows us (in shorter times) an increasingly volatile price within a chart pattern called the “ascending widening wedge”. This type of pattern is quite notorious for breaking out from the bottom, so it is advisable to remain vigilant as it coincides with the all-important resistance level featured in the old Daily range.
The odds of this pattern tend to propel the price towards a breakout below, towards around $14,500. So the question is, will the buyers be able to beat the odds and push the price back above $20,000 with that $21,350 target? Response in the next few days.
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Ether (ETH) must break its h4 resistance
Regarding the price of Ether (ETH), it is moving in an uptrend channel and is currently below its resistance. It will be interesting to monitor this asset over the next few days to see if the price can break out of this pattern from above, or if we are once again on a local top of the market.
Figure 3 – Ether price chart (H4)
Here, the breakout target would be around $1,631. However, being the rather bearish pattern on Bitcoin, watch out for it not to have a rejection or else Ether should follow towards $1,050.
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Conclusion of this technical analysis
Bitcoin and Ether stall under significant resistance. We will have to break them to consider a new bullish impulse in the coming days, otherwise beware of the bearish targets that could make us quickly lose this good trend of the last few days.
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A cryptocurrency enthusiast since 2017 and a fervent advocate of knowledge sharing, I’m a Youtuber, cryptocurrency analyst and regular trader. Every week, my role is to make you aware of the technical analysis by providing you with my perspective on the evolution of the price of Bitcoin and Ether, using my favorite indicators such as the Ichimoku and chart patterns.