After several failed attempts under psychological resistance, Bitcoin (BTC) and Ether (ETH) are going back down and triggering new bearish targets. These are the different levels that must be monitored in the coming days.
Bitcoin (BTC) enters a correction
From our last analysis, Bitcoin (BTC) price still failed to break its psychological resistance at $30,000. Even worse after a huge M-shaped rejection on the Kijun Daily, BTC is just going down again, after the correction we mentioned towards $25,000.
Figure 1 – Bitcoin daily price chart
It must be said that the price has only been rising since the beginning of the year, so it is quite logical that it ends its correction before it can start again. After touching for the umpteenth time the upper part of the ascent extended towards 30,000 dollarso Bitcoin seems to be heading back towards its next support at 25,000/24,500 dollar. This is a level that has repeatedly blocked the price in the past as resistance and should now allow for a replay in the event of a retracement.
Nothing to worry about this correction anytime soon, as long as Bitcoin stays above $24,500. On the other hand, if this support were to succeed, there would be a breakout of the expansion and the cloud below, and therefore of a bearish target below 20,000 dollars.
It will therefore be necessary to go back to the psychological resistance of 30,000 dollars in the coming days or weeks and for that, ie there will be a lot of resistance in the way with the Kijun, the Tenkan and the daily cloud to regain support.
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Target of 24,590 dollar
We saw it in our previous analysis, The h4 triangle is finally broken. Now, it’s going to take a big volume-driven price reaction to avoid that target.
Figure 2 – Bitcoin price chart (h4)
In the last few days, there have been two pullbacks below the triangle and it is surgical, with the Chikou Span (white curve) confirming this significant price rejection at the $27,500 zone.
The breakout target of this triangle is $24,590, which confirms our daily correction scenario. We will now see if the market will be able to find the volumes to prevent a return to this level, which is becoming increasingly inevitable.
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Ether (ETH) under resistance
As for Bitcoin, the price of cryptocurrency Ethereum, Ether (ETH) finds itself under multiple resistance characterized by the Kijun, the cloud and the blocking prices of the Chikou Period. And of course, the $2,000 area acts as resistance more than ever.
Figure 3 – Ether price chart (Daily)
After some strong rejection at $2000, the price broke its daily upward extension from below, which now presents a strong opportunity to return in search of the next support area at $1550.
So will the price manage to break these important levels? Retrieving the $2,000 in the next few days will be absolutely necessary to invalidate our bearish objective.
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The conclusion of this technical analysis
As you will understand, cryptocurrencies are correcting and have lost significant support that must be regained to invalidate the bearish trigger targets. For the time being, it looks like prices will continue to fall in line with the stated targets.
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Chart source: TradingView
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