This week, Bitcoin (BTC) and Ether (ETH) prices look set to seek new bullish targets. Will cryptocurrencies manage to break the next major resistances on the way? The point in this new analysis.
Bitcoin (BTC) still under resistance
As we explained in last week’s analysis, Bitcoin (BTC) price recently hit its target at $21,500 which is now significant resistance. The latter corresponds both to the middle of the previous range (lateralization of the price without volatility) of 6 months which has been reintegrated, but above all it corresponds to an area which has already rejected the price 5 times before. So will the price manage to soar this time around, or will it end up being rejected again to go lower?
Figure 1 – Bitcoin Daily price chart
By re-entering the long range that lasted from June 2022 to November 2022, the price of BTC gives a signal of potential reversal. Indeed, when the price reenters an old range, there is a good chance that its lower part will become a support, which gives a greater chance of going back to test the upper part afterwards. And since new liquidity has been scooped up along the way with many short squeezes, then a breakout of the range from the top could follow as well.
But before considering this, Bitcoin will have to manage to break its resistance in the middle of the range and then aim for the top of the range. Technically, BTC triggered a bullish target at $26,730 following the breakout of a Falling Wedge from above, but better remain vigilant until $21,500 and the range are broken from above.
If the rejection at $21,500 were to be confirmed, then there would be a high probability of returning to test the Tenkan Daily at $19,500. Indeed, it is very far from the price, which is generally not the case. Still, it will be necessary to hold the bottom of the range in support, otherwise there will be a strong risk of starting again towards a new low point around 14,300 dollars.
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Ether (ETH) on its way to $1,650?
Regarding the price of Ether (ETH), it too broke a compression triangle from above. Thereby, a new bullish target has been triggered at $2,650 (height of the pattern transferred to the place of the break).
Figure 2 – Ether price chart (H4)
We can therefore aim for this bullish objective as long as the price remains above $1,400. Below there is a risk of invalidating this pattern and moving lower to retest the support at $1,000.
Here again, we will have to go step by step because the underlying trend is still bearish. We also see that the $1,700 zone has been very difficult to break in the past since the price has systematically been rejected at this level.
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Conclusion of this technical analysis
Bitcoin and Ether will have to break their resistances in the next few days to seek their new short-term bullish targets. These scenarios are to be preferred as long as the price does not return below the supports identified earlier in this article.
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Chart source: TradingView
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Passionate about crypto-currencies since 2017 and fervent defender of knowledge sharing, I am a Youtuber, crypto analyst and regular trader. Every week, my role is to make you aware of technical analysis by giving you my point of view on the evolution of the price of Bitcoin and Ether, using my favorite indicators such as the Ichimoku as well as chartist patterns.
