This week, Bitcoin (BTC) and Ether (ETH) prices seem to be looking for new bullish targets. Will cryptocurrencies succeed in breaking the next major resistance on the way? The point in this new analysis.
Bitcoin (BTC) remains under resistance
As we explained in last week’s analysis, the price of Bitcoin (BTC) recently reached its target at $ 21,500 which is now significant resistance. The second one corresponds to the middle of the previous range (lateralization of the price without volatility) of 6 months that has been reintegrated, but above all it corresponds to an area that rejected the price 5 times before. So will the price make a huge rally this time, or will it be rejected again to go lower?
Figure 1 – Bitcoin daily price chart
By re-entering the long range that lasted from June 2022 to November 2022, BTC price signals a possible reversal. In fact, when the price re-enters an old range, there is a good chance that its lower part will become a support, giving more chances to go back to test the upper part afterwards. And since new liquidity is scooped up along the way with many short squeezes, then a breakout of the range from the top could follow as well.
But before considering this, Bitcoin will have to manage to break its resistance in the middle of the range and then aim for the top of the range. Technically, BTC drew a bullish target at $26,730 after breaking out a falling wedge from above, but it is better to stay alert until $21,500 and the range is broken from above.
If the rejection at $21,500 were to be confirmed, a return to the Tenkan Daily test at $19,500 would be very likely. In fact, it is very far from the price, which is not generally the case. Still, it will be necessary to hold the bottom of the support range, otherwise there will be a strong risk of starting again towards a new low point around 14,300 dollars.
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Ether (ETH) on its way to $1,650?
As for the price of Ether (ETH), it also broke a compression triangle from above. So, a new bullish target has been triggered at $2,650 (the height of the transition pattern to the place of the break).
Figure 2 – Ether price chart (H4)
So we can focus on this bullish objective as long as the price stays above $1,400. Below there is a risk of invalidating this pattern and moving lower to retest the support at $1,000.
Here again, we will have to go step by step as the underlying trend is still bearish. We also see that the $1,700 zone has been very difficult to break in the past since the price has been systematically rejected at this level.
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The conclusion of this technical analysis
Bitcoin and Ether will need to break their resistance in the coming days to look for their new short-term bullish targets. These situations are best as long as the price does not come back below the supports identified earlier in this article.
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Chart source: TradingView
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