This week, Bitcoin (BTC) and Ether (ETH) suffered several rejections despite numerous attempts to rally. The resistances do not let anything pass, which raises fears of a further fall in prices in the coming days. The point on the different scenarios to consider.
New Bitcoin Price Rejection on Daily Kijun
This week, the price of Bitcoin (BTC) attempted another surge, after multiple bounces off the low of the range at $18,500. But this attempt systematically failed, 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 high points always lower and lower. We would have to go back above the cloud at $22,500 at the close to become bullish again (on the breakout of the cloud), and it is precisely this resistance that is preventing BTC from taking off again.
For the moment and as long as the price and the Chikou Span (in white) remain below all these obstacles, Bitcoin should continue to falltowards the targets triggered by the breakout of the lower trendline of the pattern in yellow.
In effect, a Rising Wedge and a Bear Flag had previously been broken from belowwith their respective targets 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 next days or weeks.
Hope for a rebound remains possible however 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 objectives.
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Ether (ETH) 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 tops. Breaking the previous high point at $1,800 as well as the cloud would be a possible trend reversal signal. In the meantime, the bearish set ups are to be favored in the analyzes since the price remains blocked under numerous resistances.
Figure 2: Ether price chart (Daily)
Although the price manages to remain stable in the middle of the daily range, the selling pressure remains and we do not yet have a new breakout in favor of a bullish return.
Positioned under the Kijun and under the Ichimoku cloud (with the Chikou Span under the recently broken Rising Wedge) it seems more likely to see the price 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 evolves inside the blue rectangle (daily range). The level of $1,000 must therefore imperatively be defended.
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Conclusion of this technical analysis
Bitcoin and Ether undergo with each new rebound test the selling force of the middle of the range which does not allow for the moment to obtain bullish breakouts of structures.
As long as the price remains in a downtrend and therefore under the Ichimoku system, bearish objectives will therefore be preferred.
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Chart sources: Trading View
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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.