This week, Bitcoin (BTC) and Ether (ETH) are trying to preserve their short-term bullish momentum. However, cryptocurrencies remain under major resistances that could still block further upside potential. What are the different scenarios to consider for the next few days?
Bitcoin (BTC) is testing its resistance
Once again, the bitcoin price (BTC) finds itself under significant resistances that prevent it from surging. Although the price has resumed a bullish momentum in the short term, the movement will remain fragile as long as it continues in the lower part of the range that we have been monitoring for several months (rectangle in blue).
To go truly bullish again in the medium term, it will be necessary to wait for the price to regain the upper part of the range around $21,600. because until then, the upper trendline of the orange pattern as well as the middle of the range could well send the price back down the range to $18,500. Indeed, the middle of the range acts as a strong resistance.
Figure 1 – Bitcoin Daily price chart
The orange pattern being an Ascending Enlargement, the probabilities would rather be on the side of a rejection either by the high trendline towards $21,500, or by the Tenkan Daily at the current level.
In any case, we will have to watch the breakout which will give us the direction of the next movement. We rather favor the decline because the market structure also remains bearish with lower and lower highs. If the price breaks through the resistance on the top, then we could revisit the price looking for the top of the range towards $24,500.
However, if the pattern breaks from below, then BTC should retest its support at $18,500 with a risk this time of breaking the range from below towards $16,100 (target breakout of the Rising Wedge in yellow).
Figure 2 – Bitcoin Weekly price chart
To end this bitcoin analysis, the Ichimoku in Weekly gives us many resistances that we will have to regain.
As a reminder, a first reversal signal would be to return to Kijun Weekly at the close. But all flat Tenkan and Kijun being difficult levels to iron, it will first be necessary to be vigilant under $21,655, then $24,966 which could well send the price to new lows.
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Ether (ETH) still blocked
Ether (ETH) price remains stuck between two Tenkan Weekly flats 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 then the price should finally move back towards the top of the range at $2,000. But as long as the price remains under Weekly resistance, then we should rather favor the break down towards the bottom of the range at $1,000.
Figure 3 – Ether price chart (Daily)
Despite the bullish rebound of the past few days, this rise looks more like a correction before a new fall since Ether is still moving in its bearish range, with lower and lower highs. As a reminder, the breakout of the Rising Wedge in yellow had triggered a bearish objective at $762, a target that still remains valid.
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Conclusion of this technical analysis
Bitcoin and Ether remain under significant resistance Weekly and could well be rejected in the next few days to get the objectives already triggered. We will have to wait for confirmations of bullish breakouts to invalidate the objectives which remain bearish for the moment.
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Chart sources: TradingView
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Passionate about crypto-currencies since 2017 and fervent defender of knowledge sharing, I am a Youtuber, crypto analyst and regular trader. Every week, my role is to make you aware of technical analysis by giving you my point of view on the evolution of the price of Bitcoin and Ether, using my favorite indicators such as the Ichimoku as well as chartist patterns.