This week, Bitcoin (BTC) and Ether (ETH) failed to overcome significant resistance. Should we expect a new fall in the coming days? Update on the objectives and the different levels to monitor.
The underlying trend remains bearish on Bitcoin (BTC)
This week, the price of Bitcoin (BTC) consolidated around 16,800 dollars with still resistance: the Tenkan, the Kijun then the Cloud of the Ichimoku indicator in Daily. In this configuration, it still seems difficult to envisage a bullish rally as long as the price remains under all these curves since they characterize potential levels of significant rejections.
Figure 1 – Bitcoin Daily price chart
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Until price manages to re-enter the large blue rectangle that encompasses the previous consolidation (range), price will remain under threat of falling towards our initial target at $14,300. This follows the breakout of the Bear Flag (drawn in yellow in the figure above) and pierced from below last August. It had been the subject of a confirmation pullback (retouching of the lower limit) in September.
In addition, the previous fall that took place at the beginning of November has been corrected by 50% (with a rejection precisely on this level which also corresponds to the Kijun-Top of the cloud alignment), which is not not a very good sign. In effect, if the price were to break $15,600, a new Bear Flag would be activated, with a target of $13,500.
To invalidate the bearish scenario we are witnessing, the price would therefore have to manage to go back above the cloud at $18,500 and above all go back to the upper part of the previous range around $22,000. to give a trend reversal signal with a new high higher than the previous one. But we are still very far from it and the probabilities remain for the moment therefore on the downward side.
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Ether (ETH) follows its path towards $1,000
Since our analysis last week, the price of Ether (ETH) has indeed confirmed the breakout of the triangle that we had detected on the 4-hour time unit. This yellow chart pattern is a continuation-type triangular compression that follows a long downtrend. The exit from below was the most likely which is done, and we can now expect with high probability the price to return to the bottom of the rectangle at $1,080.
Figure 2 – Ether price chart (H4)
The target for this triangle is actually a bit lower towards $1,030, which would mean the range would be breached from below, with new downside targets to be determined if that happens.
To invalidate the fall that is underway, the price would have to go back above $1,340 to finally break a larger triangle from above, with the help of the cloud which would once again become an important support.
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Conclusion of this technical analysis
Bitcoin and Ether maintain a still clearly bearish underlying trend and the price continues to progress towards the breakout targets triggered in our previous analyses.
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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.
