Still inside their range, Bitcoin (BTC) and Ether (ETH) are posting new compressions that could well trigger big moves soon. Will cryptocurrencies finally take a clear direction?
Bitcoin still in range
Nothing has really changed since our last analysis of cryptocurrencies, the bitcoin price (BTC) is still moving in its long-standing daily range with a broadly bearish bias on higher timeframes.
Bitcoin still fails to break out of this downtrend marked by lower and lower market tops and the cloud as well as the Kijun do not miss any attempt to reverse the structure.
Figure 1: Bitcoin Daily price chart
It is therefore for all these reasons, as well as a still difficult economic context, that we will continue to favor rather bearish configurations on the cryptocurrency charts for the moment.
Bitcoin having broken an Ascending Wedge as well as a Bear Flag on the decline, it thus seems destined to seek much lower targets at $14,200 then $14,400.
Only a return of the price above the Daily cloud at $22,000 could allow a short-term trend reversal with ambitions to start higher.
Figure 2: Bitcoin h4 price chart
For the moment, the H4 chart shows us a triangle that takes into account rejections both lower and lower on its upper part, and higher and higher on its lower part. So here we have a symmetrical triangle, which breaks more generally in the direction of the trend that precedes it. Here, the trend is clearly bearish, so the breakout objective of this triangle should most likely take us towards $14,400 in the next few days or weeks.
However, the probabilities not being certainty, we must be prepared for a potential breakout from the top, which would cause the price to return above $23,000. What is certain is that the h4 cloud is currently resistance to the price, which increases the risk of falling again.
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Ether (ETH) set to break a descending triangle
Regarding Ethereum (ETH) priceit shows an increasingly strong compression inside a continuation triangle. In theory, here too the probabilities are in the bearish breakout camp.
We will wait to see if the price manages to bounce off the cloud and break the upper trendline towards a target at $1,475, or if the support breaks, giving way to a new fall towards $1,093 or even $760 (daily objective following the breakout of an Ascending Wedge from below).
Figure 3: Ether price chart (h4)
To turn bullish again, Ethereum will also need to show signs of reversal, including a return of the price above its daily cloud at $1,600.
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Conclusion of this technical analysis
Bitcoin and Ether expected to break an H4 triangle soongiving rise to a new large volatile movement.
If the odds lean towards a further decline, waiting for breakout confirmations seems more appropriate in this market which has finally been moving in range for many months.
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Chart sources: Trading View
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