This week, the price of Bitcoin (BTC) and Ether (ETH) is still stable but is starting to show interesting signals for a return to volatility. Is it soon to start again for a new fall? Discover the different scenarios to watch out for.
Bitcoin (BTC) still bearish towards $14,000
While it stabilized all week around $16,500, the price of Bitcoin (BTC) remains bearish with its chartist objective at $14,300 that it had triggered by breaking a daily Bear Flag from below. The graph clearly shows us that the price continues its downward trend with highs still lower than the previous ones, and lows still lower as well.
Figure 1 – Bitcoin Daily price chart
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In Ichimoku reading, the price remains under important resistances characterized by the Kijun (in purple) at $18,500 (bottom of the range in blue previously broken and which should reject the price in the event of a retest), then the cloud which remains above the prices. We see that the Chikou Span (in white) is devoid of any obstacle and therefore does not prevent the price from continuing to fall.
The RSI then shows us two divergences. The 1st is bullish and confirmed, while the second (characterized in yellow) shows us a possibility of a decline. In a bearish market with a target here determined at $14,300, it is best to favor bearish signals and therefore bearish divergence.
Especially since this type of signal does not necessarily mean that a movement will happenit may simply be price stabilizing before resuming its original direction, and this is what BTC price has been doing since the bullish divergence took shape.
Add to this the descending triangle that forms (dotted lines) and whose direction of the breakout is very often from below. In these circumstances, it seems more likely that the decline will continue. However, if the price breaks its resistance at $17,300 and therefore takes the path of the bullish reversal, then it could soar towards the Kijun at $18,500 before finally heading back towards the target at $14,300.
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Ether (ETH) soon back on its low range at $1,000?
Despite its ongoing bounce attempt, the price of Ether (ETH) remains below an important resistance at $1,250 which has already pushed the price back many times in the past. As it stands, the price is also moving below the Kijun and below the cloud, showing that the trend remains clearly bearish. Here too, the Chikou Span is under all resistance and could block prices in the event of an attempted bullish recovery.
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Figure 2 – Ether price chart (Daily)
As long as the price does not regain the $1,700 level at the close, then we will not have a change in structure and the fall should therefore continue towards the bottom of the range (blue rectangle) at $1,000, then towards the breakout objective of the Rising Wedge (yellow triangle) towards $762.
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Conclusion of this technical analysis
Bitcoin and Ether are stabilizing and preparing for the next move to come. With the current signals delivered by the price and the various indicators, the fall does not seem to be over yet.
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Chart source: TradingView
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