Expecting a healthy correction or a big drop in Bitcoin (BTC) and Ether (ETH)?

Les cryptomonnaies corrigent : correction saine ou chute importante à prévoir sur le Bitcoin (BTC) et l

Bitcoin (BTC) and Ether (ETH) are finally correcting after more than a month of bullish rally. A healthy correction to better break his range or is it still the start of a steep decline? The point in the analysis of the week.

Bitcoin (BTC) declined at the top of its range

As discussed in our previous technical analysis, Bitcoin (BTC) price finally hit its high range around $24,300. Now, in light of a news background that does not help to continue the rise in the short term, and especially the cryptocurrencies threatened by the SEC in the United States, cryptocurrencies are correcting and starting to fall again.

It must be said that many investors in the crypto market expected this fall, which will have taken off in a straight line for more than a month, which will make the hope of buying Bitcoin below the dollar 15,000. narrow down. So the current correction is an opportunity for some to step in after a fall of +11% in one week.

Figure 1 – Bitcoin daily price chart

So is this the end of this crypto bull rally? Apparently not. In fact the objective determined by the chart pattern in yellow (Drooping Wedge) is still around 26,735 dollars (the height of the triangle at its entry, reported to where it breaks) and will remain active as long as the price remains at above the low. of the range at $19,000.

Generally, this type of pattern gives good probabilities for the price to reach its target. In theory, then, it seems quite logical that Bitcoin bounces off the key areas determined by the Fibonacci above. BTC is likely to continue falling towards the 0.5 Fibo at $20,000 or even the 0.618 at $19,145. In fact these levels are the ones most often taken into account during a correction and therefore are the best.

As long as the price bounces from one of these levels, this correction will remain healthy and will most likely allow BTC to make a further breakthrough towards the target at $26,735., the remaining price with cloud support and many supports. On the other hand, if it goes back below the 0.618 Fibonacci, then there will be a risk of breaking the range again from below because the probabilities will be strong to witness a 100% rise for January towards 16. $600.

👉 Buy crypto through the ultra-secure ZenGo wallet

The all-in-one crypto app

0 fee for your 1st crypto purchase 🔥 (up to $200)

toaster icon

Ether (ETH) Follows Bitcoin and Plunges

It is the same on the course of Ether (ETH) where the price has been falling for several days. It looks like it is heading towards the middle of the range, which will be essential to hold as a support in order to hope to break this large rectangle from the top with the objective at $2,608 determined by the triangle in yellow .. After the mid-range zone has become a resistance several times, it could be quite logical that it now acts as a support to allow the price to go back.

Ether Price Chart (Daily) by Tagado

Figure 2 – Ether price chart (Daily)

The levels that the price could rely on are located at $1,433 (0.5 Fibo) or even $1,372 (0.618). If these levels do not allow the price to break away, then they will enter resistance and result in 100% of the January high, with a very likely price return to $1,200.

The coming days will therefore be decisive for Ether as well, which must find enough liquidity to break its range and resistance at $2,000 from above.

👉 Find our explanatory guide to buying Ether

ETH crypto is available on Binance

-10% on your fees 🔥

toaster icon

The conclusion of this technical analysis

Bitcoin and ether still fail to break their range from above. The current correction is an important test that will allow us to find out whether cryptocurrencies can calmly recover when they break out of their range, or whether they will have to undergo further corrections in the coming weeks to recover enough liquidity.

💡 Get access to our premium group consisting of Vincent Gane and our experts on fundamental and chain analysis. They provide you with exclusive information and analyzes daily on the crypto market to optimize your knowledge.

🎁 Cryptoast Research Launch Offer

1st Free Newsletter with code TOSTNL

toaster icon

Chart source: TradingView

Newsletter 🍞

Get a summary of crypto news every Monday by email 👌

What you need to know about affiliate links. This page presents assets, products or services related to investments. Some links in this article are affiliates. 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 influence 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 cannot be responsible, directly or indirectly, for any damage or loss incurred after the use of a product or service highlighted in the This article. Investments involving crypto-assets are inherently risky, 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, high risk is associated with a product with high return potential. This risk must be in line with your project, your investment horizon and your ability to lose some of these savings. Do not invest unless you are prepared to lose all or part of your capital.

To go further, read our Financial Status, Media Transparency and Legal Notices pages.

Litecoin Price Prediction: Can LTC Reach $500 After Mastercard Cooperation?

Litecoin Price Prediction: Can LTC Reach $500 After Mastercard Cooperation?

2023 bull run cancelled?  In the first week of the year Bitcoin, Ethereum and Altcoins losses

2023 bull run cancelled? In the first week of the year Bitcoin, Ethereum and Altcoins losses