After several failed attempts under psychological resistances, Bitcoin (BTC) and Ether (ETH) are heading back down and triggering new bearish targets. Here are the different levels that will have to be monitored in the coming days.
Bitcoin (BTC) goes into correction
Since our last analysis, Bitcoin (BTC) price still failed to break its psychological resistance at $30,000. Worse still after a massive M-shaped rejection on the Kijun Daily, BTC is only going down again, following the correction we mentioned towards $25,000.
Figure 1 – Bitcoin Daily price chart
It must be said that the price has only been rising since the beginning of the year, so it is quite logical that it ends up correcting before potentially starting again. After touching for the umpteenth time the upper part of its ascending widening towards 30,000 dollarsBitcoin therefore seems to be heading back towards its next support at 25,000/24,500 dollars. This is a level that has repeatedly blocked the price in the past as resistance and should now allow a rebound in the event of a retest.
Nothing to worry about this correction anytime soon, as long as Bitcoin stays above $24,500. Passing below this support would mean, on the other hand, the breakout of the widening and the cloud from below, and therefore of a bearish target below 20,000 dollars.
It will therefore be necessary to go back over the psychological resistance of 30,000 dollars in the coming days or weeks and for that, there will be many resistances on the way with the Kijun, the Tenkan and the daily cloud to regain support.
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A target of 24,590 dollars
We had spotted it in our previous analysis, triangle h4 has finally been broken from below. Now, it’s going to take a big volume-driven price reaction to avoid chasing that target.
Figure 2 – Bitcoin price chart (h4)
In recent days, two pullbacks have been made below the bottom of the triangle and it is surgical, with the Chikou Span (white curve) which confirms this significant rejection of the price by the $27,500 zone.
The breakout target of this triangle is at $24,590, confirming our daily correction scenario. We will now see if the market will be able to find the volumes to prevent a return to this level, which seems increasingly inevitable.
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Ether (ETH) under resistance
As on Bitcoin, the price of Ethereum cryptocurrency, Ether (ETH) finds itself under multiple resistances characterized by the Kijun, the cloud and the prices blocking the Chikou Span. And of course, the $2,000 area acts as resistance more than ever.
Figure 3 – Ether price chart (Daily)
After several strong rejections at $2000, the price finally broke its daily upward widening from below, which now gives a strong chance to return to look for the next area of support at $1550.
So will the price manage to break these important levels? It will absolutely be necessary to regain the $2,000 in the next few days to invalidate our bearish objective.
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Conclusion of this technical analysis
As you will have understood, cryptocurrencies are in correction and have lost significant support that will have to be regained to invalidate the bearish targets triggered. For the time being, it seems more likely that prices will continue to fall to the targets mentioned.
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Chart source: TradingView
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