After a big bullish week for the cryptocurrency market, Bitcoin (BTC) and Ether (ETH) are coming back to interesting levels and are preparing to repeat significant resistance. Will cryptocurrencies finally validate a short-term market reversal, or are we close to another rejection?
Bitcoin is trying to break through its midrange
This week the bitcoin price (BTC) is finally rising again with the price now moving above $20,000.
If this reversal is encouraged, it is still necessary to be wary of those levels that do not yet validate a trend reversal. It is clear that the price of BTC remains flat within a multi-month consolidation and in the midst of crises.
If we want to review cryptocurrencies in true bullish momentum, we will already have to come back to large buy and sell volumes that would allow the price to go up to the upper part of the range.
Figure 1 – Bitcoin daily price chart
As we have already mentioned in previous analyses, the market maintains a bearish structure with lower and lower tops, inside a downtrend for a long time. To get a structure change and look for nice bullish setups, we would need to see Bitcoin price go back above $22,500.. This zone corresponds to the last local high point and would return to the upper part of the range with the supporting cloud.
Meanwhile, the objectives remain at $16,130 (Rising Wedge), then $14,400 (Reverse Flag). In this context, a retracement of 21,600/$22,000 is still likely, but the top of the cloud that is resisting the price could generate a major rejection.
Figure 2 – Bitcoin price chart h4
On the H4 time frame, a short-term target was activated at the $23,150 level after the breakout of the triangle from above. The problem remains the presence of two significant obstacles in the way : the Tenkan Weekly at $20,415 then another Tenkan Weekly flat at $21,655 (both in red on this chart).
This Ichimoku curve, like the Kijun, shows important resistances that should not be overlooked, so there is a risk here that the price will be rejected. Despite this bullish breakout, it is therefore advisable to be cautious and consider a very likely rejection of the price around $21,655 if it succeeds in breaking the first resistance Weekly.
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Ether (ETH) ready to head back towards $2,000?
the ether course (ETH) managed to touch our definite bullish target last week and it is showing another triangle breakout this time in Daily.
This triangle sits right in the range and could help ETH reach the top of its range at $2,000. But before that, it is clear that it will also be necessary to break Tenkan Weekly resistance from above at $1,625 (also corresponding to the top of the cloud, which is currently acting as resistance).
Figure 3 – Ether price chart (Daily)
If the price breaks this resistance, ETH should come back to the top of the range at $2,000 as the Tenkan Weekly will provide support. On the other hand, in the event that the encryption was to be rejected, there would be a good chance to finally go for the bottom of the range this time around $ 1,000.
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The conclusion of this technical analysis
Bitcoin and Ether are showing the first signs of a return to bullish momentumbut still under significant weekly resistance.
The breakout of the latter would validate structural reversals and offer good prospects for the future as a result. As long as prices continue to face lower peaks, then the risk of falling will remain high.
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Chart sources: Trading View
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I am passionate about cryptocurrencies since 2017 and I am an avid knowledge sharing advocate, Youtuber, crypto analyst and regular trader. Every week, my role is to inform you about technical analysis by giving you my perspective on the evolution of the price of Bitcoin and ether, using my favorite indicators such as the Ichimoku as well as chart patterns.
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