After the uptrend, place for the range for cryptocurrencies. Bitcoin (BTC) and Ether (ETH) remain stuck under their psychological resistances, will they manage to cross them or is a correction coming? The point in the analysis of the week.
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Vers une correction pour le Bitcoin (BTC) ? La tendance du début d’année perd en vitesse
Soon the return of Bitcoin (BTC) to 25,000 dollars?
While bitcoin (BTC) price has touched the targets we discussed in our last analysis, it now appears to be stuck below the $30,000 psychological zone. Indeed, the thresholds with round numbers are generally quite relevant resistances to monitor.
Figure 1 – Bitcoin Daily price chart
Now, with the price having broken the daily Kijun back to $29,000, he must confirm this level in support by finally managing to break the resistance of 30,000 dollars. The current risk being that the BTC will be rejected again and start falling again towards the next support. If the price passes $30,000, then there will be a good chance that it will fly up to the high trendline in yellow towards $33,000.
For now, the support to watch in case of a further correction is located at $25,000. There too it is a question of a psychological zone, which has demonstrated in the past its effectiveness as a resistance with 3 contact points and the appearance of the ichimoku cloud. As a reminder, any resistance becomes support once broken on the upside, so this area should cause Bitcoin to react in the event of a retest.
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An inevitable fix?
On the lower unit of time in h4, the price is flat and seems to be waiting for the economic event that will push it towards the breakout of its range between $26,600 and $30,800. Despite a pronounced daily uptrend, the movement ran out of steam. Faced with significant psychological resistance and the Kijun Daily, Bitcoin should at least correct in the short term to recover better.
Figure 2 – Bitcoin price chart (h4)
In yellow, an ascending broadening pattern that encompasses the price action of BTC. This type of pattern generally marks the end of a trend and the coming reversal of the market. The odds are therefore rather bearish. with this figure whose objective would be at 24,350 dollars in the event of a breakout.
Of course it will already be necessary to break the bottom of the pattern at 27,400 dollars and then cross the support of 25,000 dollars downwards. Waiting for, we remain in a directionless market and the best thing to do is wait for the next move that triggers one of our two scenarios.
To invalidate this pattern, it will be necessary to break the range from above and therefore go back above 30,500 dollars.
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Towards a decline in Ether (ETH) to $1,570?
The price of Ethereum’s cryptocurrency, Ether (ETH) shows the same pattern as Bitcoin. A multi-week range contained within an ascending widening pattern. Once again, this chart pattern is more likely to break down since the price is more and more volatile and always on the rise, and a lack of liquidity will inevitably be felt.
Figure 3 – Ether price chart (h4)
Again, the price is blocked by the Ichimoku cloud and risks being precipitated into a breakout of the sideways support at $1,840. If this level gives way, then we will have to see ETH back to $1,570 fairly quickly (pattern breakout objective).
To invalidate this bearish pattern, it will be imperative to return above the cloud to 2,000 dollars. In the meantime, this zone remains a psychological resistance that Ether is unable to overcome.
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Conclusion of this technical analysis
Cryptocurrencies have lost momentum and are now in the range phase. A correction cannot be ruled out in order to recover the liquidity necessary to pass the major resistances that we have identified.
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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.
