This week, Bitcoin (BTC) and Ether (ETH) prices look set to seek new bullish targets. Will cryptocurrencies be able to break the next major resistances to come? The point in this new analysis.
Bitcoin (BTC) still under resistance
As we explained in last week’s analysis, the price of Bitcoin (BTC) recently hit its $21,500 target, which is now remarkable resistance. The latter corresponds both to half of the previous range (price lateralization without volatility) of 6 months which has been replenished, but above all it corresponds to an area which has already rejected the price 5 times before. So will the price be able to go higher this time or will it end up being rejected again to go lower?
Figure 1 – Bitcoin daily price chart
Returning to the long range from June 2022 to November 2022, the price of BTC gives a signal of a potential reversal. In fact, when the price re-enters an old range, there is a good chance that the bottom of the price becomes support, which gives more chances to come back and test the top later. And as new liquidity has been gathered along the way with many short squeezes, a range breakout from the high could also follow.
But before considering this, Bitcoin will need to be able to break its resistance in the middle of the range and then aim for the top of the range. Technically, BTC triggered a bullish target at $26,730 after a Falling Wedge breakout from the top, but it is best to remain vigilant until $21,500 and range is cleared from above.
If the rejection at $21,500 is confirmed, then there is a high probability that we will re-test the Tenkan Daily at $19,500. In fact, it’s a far cry from the price, which is generally not the case. However, it will be necessary to keep the bottom of the range as support, otherwise there will be a strong risk of restarting towards a new low around $14,300.
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Ether (ETH) heading towards $1,650?
As for the price of Ether (ETH), it too has broken a compression triangle from above. Thereby, A new bullish target at $2,650 has been activated (motif height transferred to the point of interruption).
Figure 2 – Ether price chart (H4)
We can therefore aim for this bullish target as long as the price stays above $1,400. Below, there is a risk of invalidating this pattern and falling to retest the $1,000 support.
Also in this case we will have to proceed step by step because the underlying trend is still bearish. We also see that the $1,700 zone has been very difficult to break in the past as the price has been systematically rejected at this level.
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Conclusion of this technical analysis
Bitcoin and Ether will need to break through their resistance over the next few days to seek out their new short-term bullish targets. These scenarios are preferable as long as the price does not return below the supports identified earlier in this article.
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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.