Since April, Bitcoin (BTC) and Ether (ETH) have initiated a correction that no longer seems to want to stop. Prices are reaching important support levels that will have to be held to avoid invalidating the rise at the start of the year. So what are the different scenarios to watch out for? The point in this analysis of Bitcoin and Ether.
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L’heure de rebondir pour le Bitcoin (BTC) et l’Ether (ETH) ?
Bitcoin (BTC) finally back to $25,000
After multiple breakout tests at $30,000, an area that represents significant psychological resistance, the price of bitcoin (BTC) ultimately failed to soar. If the beginning of the year had started more than well with a strong bullish trend, now is the time for correction and uncertainty in the face of the various attacks by the SEC on the cryptocurrency market.
As we explained in our previous analyses, this return to $25,000 seemed highly likely given the lack of volumes and the importance of this next support represented by the $25,000 level. Now, we will have to rebound quickly or risk seeing the BTC fall back below $20,000 and with the risk that the Bear Market will drag on further.
Figure 1 – Bitcoin Daily price chart
Bitcoin therefore finally retreated to the lower part of the widening pattern in yellow, following the breakout of the small dotted triangle whose objective was clearly a return to $25,000. Now that this price has been reached, Bitcoin finds itself under many resistances: the 30,000 dollars, the Ichimoku cloud, the Tenkan (turquoise curve) and the Kijun (purple curve).
It therefore becomes difficult to see an upside opportunity in the short term as there are obstacles in the way. It will absolutely be necessary to regain the cloud in support around 30,000 dollars to speak of a bullish scenario.
In the meantime, because the price finds itself moving inside a large ascending widening pattern (in yellow), then we believe there is a real risk of continuing the current decline. It is indeed a pattern whose exit probabilities are largely in favor of a fall.
Even though the $25,000 area remains an important support to hold, the real areas to watch are those characterized by the Weekly Kijun at $23,667 and the Monthly Tenkan at $23,265. These levels will be urgently needed as they allow buyers to maintain a bullish bias.
If the price goes back below these supports, they will then become resistance and help BTC hit the breakout target of the upward widening pattern around $20,600. As the Chikou Span is still very far from the low trendline of this chart pattern, then there is a chance that the downward breakout will not be validated for several days. This would allow time for prices to stabilize above $25,000 before further bearish momentum.
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Ether (ETH) on its way to a retest of $1,500?
As for the price of the cryptocurrency Ethereum, Ether (ETH) continues its correction after the breakout of an upward widening several weeks ago. Following a final pullback to $2,000 that was not enough to overcome this important resistance, the price now seems to be heading straight for this crucial support at $1,500.
Figure 2 – Ether price chart (Daily)
Ether has broken its support at $1,750 which was once resistance and which should now allow a rebound in the price since it is an area that had been worked for a long time. Unfortunately, ETH having fallen below this zone, it now risks becoming an obstacle again.
Until it goes above $2,000, the analysis will therefore remain bearish there too with a target of 1,569 dollars. All the Ichimoku curves are likely to hold the price back for a long time.
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Conclusion of this technical analysis
In the coming days, cryptocurrencies will absolutely have to initiate a rebound on the supports being retested. Otherwise, new bearish targets will be activated with the risk of having a summer in the red.
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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.
