After the uptrend, a place for the range for cryptocurrencies. Bitcoin (BTC) and Ether (ETH) remain stuck below their psychological resistance, will they manage to cross them or is a correction coming? The point in the analysis of the week.
Bitcoin (BTC) soon returned to 25,000 dollars?
Although the price of bitcoin (BTC) touched the targets we discussed in our last analysis, it now appears to be stuck below the psychological zone of $30,000. In fact, resistance is quite relevant to monitor the thresholds with rounded numbers.
Figure 1 – Bitcoin daily price chart
Now, with the price having broken the daily Kijun back to $29,000, he has to confirm this support level by finally managing to break the 30,000 dollar resistance. The current risk is that the BTC will be rejected again and start falling again towards the next support. If the price exceeds $30,000, then there will be a good chance that it will fly up to the trend high in yellow towards $33,000.
for now, support is $25,000 to look at in case of another correction. There is also the issue of a psychological zone, which in the past showed its effectiveness as resistance with 3 points of contact and the appearance of the ichimoku cloud. As a reminder, any resistance becomes support when broken on the upside, so this area should cause Bitcoin to react in the event of a retracement.
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On the lower time unit in h4, the price is flat and seems to be waiting for the economic event that will push it towards breaking out of its range between $26,600 and $30,800. Despite a pronounced daily trend, the movement ran out of steam. Facing significant psychological resistance and the Kijun Daily, Bitcoin should at least correct in the short term for a better recovery.
Figure 2 – Bitcoin price chart (h4)
In yellow, a bullish extension pattern that includes BTC price action. This type of pattern is usually the end of a trend and an upcoming market reversal. Therefore the odds are quite bearish. with this figure his objective would be 24,350 dollars in the event of a breakout.
Of course, it will already be necessary to break the bottom of the pattern at 27,400 dollars and then cross down the 25,000 dollar support. Waiting, we are still in a directionless market and the best thing to do is to wait for the next move that will trigger one of our two situations.
To invalidate this pattern, it will be necessary to break the range from above and therefore go back above 30,500 dollars.
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Towards a decline in Ether (ETH) to $1,570?
The price of the Ethereum cryptocurrency, Ether (ETH) shows the same pattern as Bitcoin. A multi-year range within a bullish expansion pattern. Once again, this chart pattern is more likely to break down since the price is more and more volatile and always on the rise, and a lack of liquidity will certainly depend.
Figure 3 – Ether price chart (h4)
Again, the price is blocked by the Ichimoku cloud and risks being pushed into the lateral support at $1,840. If this level holds, then we should see ETH back to $1,570 fairly quickly (the breakout target of the pattern).
To invalidate this bearish pattern, it will be crucial to return above the cloud to 2,000 dollars. Meanwhile, this zone remains a psychological resistance that Ether cannot overcome.
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The conclusion of this technical analysis
Cryptocurrencies have lost momentum and are now in the range phase. A correction cannot be ruled out to recover the liquidity needed to overcome the major resistances we have identified.
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Chart source: TradingView
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