After a turbulent week, Bitcoin (BTC) and Ether (ETH) are heading back up and triggering new bullish targets. Is a new explosion in prices to be expected or the correction is near?
Bitcoin (BTC) reaches its daily target
In our previous analyzeswe found that the price of bitcoin (BTC) was contained within a range between $15,500 and $25,000 (i.e. a lateralization of the price without a clear direction). After a bounce off the bottom of the Ichimoku cloud last week, it seemed very likely that the price would start to rise again to finally break this resistance which had not been crossed since August.
Figure 1 – Bitcoin Daily price chart
Following the breakout of this yellow triangle in January 2023 and the return of the price above the Kijun (purple curve), we were able to set a new target at $26,734 for Bitcoin and it is done since the price has reached this level. Now, the question is whether BTC will manage to move higher, or if a corrective drop is to be expected on this take profit level.
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Will Bitcoin Reach $30,000?
Since we have therefore reached our objective, we must now look at what the lower unit of time gives, that of 4 hours (h4). So, we notice that the price has broken through the important resistance of $25,000 corresponding to the upper part of a broadening pattern descending at a right angle. By taking the height of this chart pattern and bringing it back to its breakout, we therefore obtain our new bullish target which was triggered and confirmed by the breakout of the Chikou Span as well.
Figure 2 – Bitcoin price chart (h4)
The probabilities therefore give a good chance of continuing this rise towards around $31,620. Along the way, however, there will be significant resistance to watch at $28,600 (former support area turned resistance on the daily chart).
As for each analysis, probabilities are not certainties, so it is important to plan an invalidation scenario. In this context, a return of the price below $22,800 would be quite negative for the future since the cloud and the Kijun will again act as resistances and that this would therefore risk leading the BTC towards its next support at $20,000.
Ether (ETH) still on its way to $2,000?
The price of Ethereum’s cryptocurrency, Ether (ETH), continues to rise and is no longer really far from $2,000. Its daily range is contained between $1,000 and $2,000 and a priori the price should soon retest its high range. The target of $2,000 therefore seems quite likely, knowing that Bitcoin has triggered a bullish target and that Ether is trying to break a bullish pattern on the h4 time unit. See if he manages to break it.
Figure 3 – Ether price chart (h4)
As with BTC, ETH price is testing the breakout of a new pattern from above which could give way to a rise in the price in the next few days towards the target at $2,246 (height of the widening descending at right angles to its exit). Of course, we will have to wait for the breakout at the close of this figure to obtain a relevant signal.
Then, this objective will remain valid as long as the price does not go back under the cloud at $1,560.in which case there will be a risk of testing the next support at $1,500.
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Conclusion of this technical analysis
So will Bitcoin and Ether manage to continue this explosive rise started since the beginning of the year? The charts remain bullish but the sustainability of the new targets will depend above all on the next economic news.
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