After a week of consolidation, Bitcoin (BTC) and Ether (ETH) are benefiting from various supports which should help them to continue their rise. But what are the objectives to aim for and what are the different scenarios to monitor? The point in this analysis.
Bitcoin (BTC) retests its high range
Since our analysis last week, the price of Bitcoin (BTC) has managed to break through its resistance at $21,500 (zone corresponding to the middle of the previous range which lasted from June to November 2022). Now the price is approaching $24,400, another important resistance that must be broken to give a strong reversal signal.
Figure 1 – Bitcoin Daily price chart
Since the beginning of the year, cryptocurrencies have continued a meteoric rise without real correction and regained key support levels. Bitcoin has managed to reintegrate its range (rectangle in blue) which was resistance in December and which should now allow the price to rebound if it were to return to this level.
For the moment, all the signals seem to be green with also the 100 Moving Average and the Ichimoku system showing a bullish recovery. The price is indeed supported by the Tenkan, the Kijun and the cloud while the Chikou Span continues its path being devoid of any obstacle.
Moreover, a large triangle (falling wedge) has been broken on the upside, indicating the area around $26,735 as the next target, as mentioned in our previous analysis. If nothing is certain, the indicators are in any case very optimistic. So let’s hope that the buying force can be enough to break the range from the top.
Regarding the potential downside scenario, it will be necessary to monitor the behavior of the price on the 24,400 dollars. Indeed if the price were to break the Tenkan down to 22,000 dollars, then a return on the Kijun to around 20,300 dollars would be preferred.
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Ether (ETH) heading towards 2000?
When it comes to Ether (ETH) price, a bitcoin-like scenario is unfolding. A falling wedge has been broken from above and now gives a bullish target at around $2,608. To achieve this objective, however, it will be necessary to break the $2,000 zone again, which is both a psychological threshold but also the top of the range which has lasted since June 2022.
Figure 2 – Ether price chart (Daily)
To help the price break through this important zone, the Tenkan and the Kijun accompany the price and give a bullish signal in addition to the 100 Moving Average. As long as ETH manages to stay above $1,450 (middle of the range it managed to cross), then we can see a high probability of returning to test $2,000.
In the event that the price goes back below its mid-range, in this case there would be a good chance that this zone will once again provide support. At that point, we will no longer be safe from a return to $1,000.
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Conclusion of this technical analysis
Bitcoin and Ether should retest their high range in the coming days. Then, if they manage to break this level, then their prices should reach the targets determined by the Daily triangles. Beware, however, of rejections that remain possible on these resistances, because any increase generally ends in a correction.
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Chart source: TradingView
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