This week, the price of Bitcoin (BTC) and Ether (ETH) has remained stable but is starting to show interesting signs of a return to volatility. Is it to start again with a new fall? Find out the different situations to watch out for.
Bitcoin (BTC) still towards $14,000
Although it stabilized all week around $16,500, the price of Bitcoin (BTC) remains bearish with its chart objective at $14,300 which it triggered by breaking the daily Bear Flag below. The graph clearly shows us that the price continues the downward trend with highs still lower than the previous ones, and lows still lower as well.
Figure 1 – Bitcoin daily price chart
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In the Ichimoku reading, the price is still under important resistance characterized by the Kijun (in purple) at $18,500 (the bottom of the range in blue broken before and should be rejected on the price in case of a retest), then the cloud that is still above the prices. We see that the Chikou Span (in white) has no barrier and therefore does not prevent the price from continuing to fall.
The RSI then shows us two divergences. The 1st is bullish and confirmed, while the second (characterized in yellow) shows us the possibility of a decline. In a bearish market with a target here set at $14,300, it is best to favor bearish signals and thus bearish divergence.
Especially since this type of sign that does not necessarily mean that movement will occurit could simply be stabilizing price before going back to its original direction, which is what BTC price has been doing since the bullish divergence.
Add to this the descending triangle that forms (dotted lines) and the breakout direction is often below. In these circumstances, the decline looks set to continue. But, if the price breaks its resistance at $17,300 and thus takes the path of the bullish reversal, then it could rise sharply towards the Kijun at $18,500 before finally heading back towards the target at $14,300.
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Ether (ETH) back to its early low range at $1,000?
Despite its continued bounce attempt, the price of Ether (ETH) is still below a key resistance at $1,250, which has already pushed the price back several times. As it stands, the price is also moving below the Kijun and below the cloud, indicating that the trend is still clearly bearish. Here too, the Chikou Span is under all resistance and could block prices in the event of an attempted bullish recovery.
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Figure 2 – Ether price chart (Daily)
As long as the price does not recover the $1,700 level at the end, we will not have any change in the structure and the fall should therefore continue towards the bottom of the range (blue rectangle) at $1,000, then towards the breakout objective of the Rising Wedge (yellow triangle) towards $762.
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The conclusion of this technical analysis
Bitcoin and Ether are stabilizing and preparing for the next move to come. With the current signals delivered by the price and various indicators, the fall does not seem to be over yet.
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Chart source: TradingView
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