While consolidating for several days below key levels, Bitcoin (BTC) and Ethereum (ETH) still have ongoing bullish targets. Will cryptocurrencies manage to overcome their psychological resistance or is a strong correction coming?
Bitcoin (BTC) Holds Its Uptrend
Since the beginning of the year, the price of bitcoin (BTC) has continued to rise and now seems on the right track to retest an old psychological support that has become resistance at $30,000. Supported by the Tenkan, the Kijun and the Ichimoku cloud, the BTC could finally manage to return above this zone which it has not visited since June 2022.
Figure 1 – Bitcoin Daily price chart
Of course, when retesting the $30,000, a rejection of the price will be very likely because it is a round number and the past has shown that sellers position themselves a lot in these areas, but the uptrend that has taken hold since January will not be challenged as long as the price stays above the Kijun and Cloud Daily near $24,300.
Often, it is as soon as this Kijun breaks down that a sell signal is triggered. As long as this is not the case, the rise of Bitcoin therefore remains the most likely.
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Bitcoin still on its way to $30,000?
Since our last analysis, price continues to slowly rise towards the breakout target of the right angle descending broadening pattern we identified. Here too, on the h4 time unit, the trend remains clearly bullish with the price supported by each of the supports of the Ichimoku indicator.
Figure 2 – Bitcoin price chart (h4)
We had talked about the strong chance of rejection represented by the resistance at $28,600, we are now stuck just below. Thanks to the breakout of a continuation triangle on the lower time frame (in h1), the price should finally manage to break through this level from above in the next few hours.
Then, we could finally have the long-awaited retest of $30,000, then go for our objective at $31,620 corresponding to the height of the pattern carried over to the place of its breakout.
This scenario could be invalidated in the event that the price loses its support at $26,600. We would then have a retest of $25,000 where we would absolutely have to bounce back or risk going back to $20,000 again.
Ether (ETH) still under resistance
The price of Ethereum’s cryptocurrency, Ether (ETH), is still blocked by its resistance around $1,800. IIt will be necessary to succeed in breaking this level to finally have a price impulse towards a new bullish target which will follow the breakout of this widening pattern descending at a right angle, the same as on Bitcoin.
Figure 3 – Ether price chart (h4)
In case of break of this resistance, then the probabilities will be stronger to visit the psychological threshold of 2,000 dollars. Then if the price manages to cross this level, ETH should move towards the objective of the pattern towards 2,289 dollars.
This scenario will be invalidated if the price goes back below $1,700. Indeed this zone currently represents an important support on which the price has consolidated for a long time. Losing this level should trigger a move back towards $1,500 and challenge the current uptrend with a bearish breakout from the Kijun Daily.
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Conclusion of this technical analysis
The objectives therefore remain bullish for Bitcoin and Ether. To see now if they manage to break their respective psychological resistances, which would be very good news for the future since they would act as support.
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