Bitcoin (BTC) and Ether (ETH) are back in a correction that will have given us May the first bearish month of the year when most cryptos have only been rising since January. Will the month of June give way to a bullish recovery or will this fall in prices still continue? Find out what levels to watch out for in this new analysis.
Bitcoin (BTC) is still in correction
This week, the price of bitcoin (BTC) continues its course in a range between $30,000 and $25,000. As can be seen on the daily chart, BTC seems to be gradually heading towards its support at $25,000 after several rejections below the psychological resistance at $30,000.
Figure 1 – Bitcoin Daily price chart
If the price has already rebounded several times on the 0.382 Fibonacci zone at $26,020, it still remains under resistance with the Tenkan, the Kijun and the Ichimoku cloud which are currently an obstacle and which still prevent a takeoff above $30,000.
The market is currently suffering from a lack of volumes, with May having been the quietest month since April 2017, which is not helping the price to recover. In this context, we still favor a return of the price of Bitcoin around $24,500, a level which corresponds both to the 0.5 of Fibonacci, but also to the breakout objective of the dotted triangle and to the low trendline of the large daily widening pattern.
Everything therefore points to a highly probable decline in this zone, which it will absolutely be necessary to hold as support or else return to test the 20,000 dollars. Our scenario therefore remains bearish and will be invalidated only if the price returns to $30,000, above the Ichimoku curves.
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Ether (ETH) Still Stuck Below $2,000
For its part, the price of Ethereum’s cryptocurrency, Ether (ETH) is very clearly in the range phase, that is to say flat, with significant resistance at $2,000 and support to hold. around $1700. Here too, the lack of volumes is felt, which does not yet make it possible to overcome the multiple obstacles that the price of ETH has in its path.
Figure 2 – Ether price chart (Daily)
The analysis is simple, Ether will need to break back above $2000 to invalidate the breakout target of the ascending widening (in yellow above) which was broken from below with an estimated correction target of $1,569. The price having bounced off the upper part of the range and still being under resistance, rather, we expect a return to the bottom of the range at $1,720 (also corresponding to a pullback on the 0.5 Fibonacci), if not the breakout of it from below.
The Chikou Span (white curve) remains blocked under the Tenkan, the Kijun and the Cloud, which for the moment does not allow the price to re-break the 2,000 dollars, an area to watch for returning bullish in the short term.
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Conclusion of this technical analysis
Cryptocurrencies once again remain below key levels to quickly revert to invalidate the bearish targets they have triggered. Pending the arrival of volumes, prices remain in correction.
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Chart source: TradingView
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