After an encouraging month-long rally, the prices of Bitcoin (BTC) and Ether (ETH) finally faced a significant resistance zone. We will have to rebound quickly, otherwise the cryptocurrencies will once again start to fall more significantly.
Bitcoin (BTC) gives a new bearish signal
After correcting About 50% from its last drop, the price of Bitcoin (BTC) finally started to fall again towards strong support at $17,000. If for the moment the price has rebounded on its Kijun Daily, it is not sure that it will hold this level for very long because of the cloud forming resistance in addition to the Tenkan Weekly.
Figure 1 – Bitcoin Daily price chart
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In effect, Bitcoin is moving inside a small range (price horizontally) since the beginning of November and clashed in recent days with the Tenkan Weekly at $18,400, which also corresponds at the bottom of the previous consolidation which lasted 5 months.
This old medium became a resistance and instantly kicked in when price tried to recross that zone. Since then, he has been heading dangerously towards a breakout of a support that he had built in recent weeks at $17,000. Note that the underlying trend remains clearly bearish, with high points always lower and lower.
To become optimistic again, it would therefore be necessary to count on a rebound around this zone, otherwise the risk will be of a return to the lower part of the small range at 15,700 dollars. And if it were to break this next support, then the price could this time dive to $14,300, zone which corresponds to the breakout target of the Bear Flag that we have been monitoring since its breakthrough several months ago.
Figure 2 – Bitcoin h4 price chart
During these last hours, BTC has also broken an Ascending Bevel from below and its target is precisely at $15,700. The probabilities are therefore still on the side of a bearish scenario which would be invalidated only in the event of a return above the 18,600 dollars, level of the Tenkan Weekly.
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Ether (ETH) soon below 1,000 dollars?
As on the BTC, the price of Ether (ETH) has also broken a triangle which should take the price here to 1,048 dollars. It is a continuation triangle which also gives the price more chances to fall. To avoid this bearish scenario, it will absolutely be necessary to bounce off the support at $1,200, which is currently being retested by the price.
Figure 3 – Ether price chart (Daily)
In the event of a return to the $1,000 zone, then the price will certainly continue its fall lower since the bottom objective is still at $762 (breakout of the Daily Ascending Bevel from below).
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Conclusion of this technical analysis
Bitcoin and Ether do not show any sign of a reversal for the moment. It therefore seems more likely that the fall will continue on cryptocurrencies as long as the market does not show signals of a reversal of the trend.
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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.
