After a bearish week on cryptocurrencies, Bitcoin (BTC) and Ether (ETH) are regaining volatility. Is the market heading for a strong move? Here are the different scenarios to watch out for.
Bitcoin very undecided this week
The last few days have been eventful for cryptocurrencies, including the FOMC and inflation figures in the United States.
If these announcements concerning the American economy were expected even by crypto investors, it is because the community has become accustomed to these tense days during which the price of Bitcoin (BTC) as well as altcoins suffer the repercussions of the country’s economy.
And this week, the BTC continued its evolution, very largely correlated to the traditional markets. After several days of consecutive fall, going from $20,500 to $18,200, the king of crypto-assets gives some hope to optimistic investors for the short termwith a reaction on the bottom of the daily range (blue rectangle).
Despite the ongoing price reboundwatch out for bearish signs which remain on the graph.
Figure 1: Bitcoin Daily price chart
Concretely, it suffices first to observe the current economic context, with US inflation figures which are still breaking new 40-year records, then the bearish bias of the market characterized by a price which no longer manages to make any difference. structural inversion.
We have prices that are always making new highs lower and lower, never managing to get back above the $25,000 one.
In this context of accumulation in the middle of the Bear Market, it seems difficult to expect a market reversal anytime soon.
As long as the prices do not manage to resume a bullish momentum and therefore go back above the main resistances at $22,000 then $25,000, we will therefore rather have to expect to seek new low points as we had. already highlighted in previous analyses.
The optimal scenariogiven by the break of the Ascending Bevel in yellow, would be to retrace down towards the pattern breakout objective towards $16,130 (height of the pattern transferred to the place of the break). However, as long as the support at $18,200 allows the price to rebound, the hope of regaining the middle of the range remains intact.
So will we finally manage to rebound towards the upper part of the range, or will prices continue to fall towards a new low point?
If the indices are rather bearish, it will be necessary to wait to see if the price manages to regain the cloud in support or to break the range from below to then see a real direction take shape. Waiting, the breakout targets point quite clearly towards a further downside in cryptocurrencies.
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Ether (ETH) still on a downtrend
On the side of price of Ethereum (ETH) the price remains there also in a bearish bias. Indeed, the price still fails to break above its range at $2,000.
As long as the price does not make a new high higher than the previous one, then we will not have a signal of reversal of structure.
Figure 2: Ether price chart (Daily)
Since June, the price of ETH has also always been moving in its range, from which it no longer manages to regain the upper part. After breaking a Rising Wedge from below, a new bearish target has been triggered around $762.
This corresponds to the height of the yellow triangle, transferred to the place of the break. This objective will be invalidated only if the price manages to go back above its cloud, which for the moment has become resistance in addition to the Kijun and the low Daily trendline.
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Conclusion of this technical analysis
Bitcoin and Ether remain bearish in the short termwith charts that do not yet show a trend reversal, nor a breakout of the bearish structures.
Bearish setups are therefore always to be preferredwith potential downfalls to come.
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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.