For several weeks, cryptocurrencies have been losing momentum and have entered a range phase. Still blocked by their psychological resistance, will Bitcoin (BTC) and Ether (ETH) finally correct? The point in the analysis of the week.
Bitcoin (BTC) still does not cross $30,000
Despite numerous attempts in April, the price of bitcoin (BTC) remains blocked for the moment by its daily Kijun around $29,100, as well as by its psychological resistance at $30,000.
Figure 1 – Bitcoin Daily price chart
As long as the $30,000 zone will block prices, a return around $25,300 (Tenkan Weekly) seems to be preferable, as we already explained in our previous analysis. This would correspond to a retest of this same level which was resistance at the beginning of the year and which should now be confirmed as support.
In the event of a break through the top of $30,000, the way will be clear with chances of being able to climb up to around $33,200, the next resistance corresponding to the upper part of the upward widening in yellow.
Going back below $25,000 would be a risk of breaking the widening from below, which could cause the price to fall much deeper below $18,000.
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Compression coming to an end
If we look at the h4 time frame, BTC shows a well-defined range between $31,000 and $26,800. The price is moving without a distinct trend waiting to move on to its next move.
Figure 2 – Bitcoin price chart (h4)
Inside this lateralization contained in a large enlargement ascending (pattern which breaks rather from the bottom in general), the price also evolves in a triangle whose compression seems to arrive at the end. The price is becoming less and less volatile, suggesting that a strong move is ahead.
If this type of pattern can make us think of an imminent breakout because of its bearish probabilities, we will however wait to see on which side the price will break this pattern. It will of course be necessary for the Chikou Span (in white) to confirm the breakout to increase the chances of relevance.
In the event of a bullish exit, the price should go for $32,216 in the next few days, while it would return to $24,466 if it breaks below.
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Ether (ETH) set to correct?
For its part, the price of Ethereum’s cryptocurrency, Ether (ETH) is also still evolving within an upward broadening. As with BTC, the upcoming breakout is more likely to be bearish.
Figure 3 – Ether price chart (h4)
Although the price managed to get back above all the obstacles of the Ichimoku, the zone of $2,000 is a real psychological resistance and represents a risk of an imminent correction in the event of a new rejection. With a pattern that breaks rather from the bottom, a correction to $1,568 would be beneficial for the market to breathe and gain liquidity.
If ETH breaks the $2,000 resistance from above, then the next resistance to look for is $2,120.
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Conclusion of this technical analysis
Cryptocurrencies remain stuck in a range and must always break their psychological resistance to finally fly away. In the meantime, the market has lost momentum and the risk of a correction is very present.
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Chart source: TradingView
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