Bitcoin (BTC) and Ether (ETH) prices have exploded this week. The hope of a short-term bullish recovery is back but after such a strong rise, what are the different scenarios to watch? The point in this new technical analysis of the cryptocurrency market.
Bitcoin (BTC) facing a large resistance wall
After evolving in a stable manner for long weeks, the price of Bitcoin (BTC) soared and regained +12.5% of its value in one week. Now, its price is trying to break through a sizeable resistance zone since it is the $19,000 / $20,000 area that provided support during the long range from June to November 2022.
Figure 1 – Bitcoin Daily price chart
Although this increase is encouraging and is approaching key levels, Bitcoin still remains in a downtrend with ever lower tops. We also see that the price stumbles surgically both on the Daily trendline but also on the level of 0.618 Fibonacci.
Moreover, this $19,000 area is exactly the bottom of the old 6-month range. As a reminder, any broken support will become resistance, so it is likely that the price will see rejection in the next few days and correct, at least temporarily.
If the price were to confirm the reintegration of the range by performing, for example, a pullback on the top of the ichomoku cloud, then there would be a strong probability 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 to be able to accumulate as much liquidity as possible with a view to breaking this very large wall of resistance.
In the opposite case, if the price fails to stay inside the range, it should return to test its support at $15,800. At that time, it will be imperative to hold 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.
? Buy cryptos with the reference broker eToro
The platform that simplifies trading
Buy crypto in minutes
A reversal pattern for Bitcoin (BTC) in h4?
By linking local tops and bottoms together, the price of BTC shows us (in lower time frame) a price that is increasingly volatile inside a chart pattern called “ascending widening wedge”. This type of pattern is rather known to break from the bottom, so it is advisable to remain vigilant because it coincides with the very important level of resistance characterized by the old Daily range.
The odds of this pattern tend to push the price towards a breakout from below, towards around $14,500. So the question is, will the buyers be able to beat the odds and send the price back above $20,000 with that target at $21,350? Answer in the next few days.
? Find our selection of the best sites to buy Bitcoin
The No. 1 exchange in the world – Regulated in France
10% off your fees with code SVULQ98B ?
Ether (ETH) must break its resistance h4
Regarding the price of Ether (ETH), it is moving in a bullish 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 manages to break this pattern from the top, or if we are again on a local top of the market.
Figure 3 – Ether price chart (H4)
Here, the breakout target would be around $1,631. However, the pattern being rather bearish on Bitcoin, watch out that it doesn’t have a rejection or else Ether should follow towards $1,050.
? Find our explanatory guide to buy Ether
The No. 1 exchange in the world – Regulated in France
Binance
-10% off fees with code SVULQ98B ?
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 pay attention to the bearish objectives which could quickly make us lose this good progress of the last few days.
? Gain access to our premium group consisting of Vincent Gane and our experts in fundamental and on-chain analysis. They deliver you daily information and exclusive analyzes on the crypto market to optimize your knowledge!
Progress in the world of cryptocurrencies with Cryptoast experts ?
Chart source: TradingView
Newsletter ?
Receive a summary of crypto news every Monday by email ?
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
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.