This week, Bitcoin (BTC) and Ether (ETH) prices appear to be seeking new bullish targets. Will cryptocurrencies manage to break the next major resistances on the way? The point of this new analysis.
Bitcoin (BTC) still under resistance
As we explained in last week’s analysis, the Bitcoin (BTC) price recently reached its target of $21,500, which is now considerable resistance. The latter corresponds both to the middle of the previous interval (lateralization of the price without volatility) of 6 months which has been reintegrated, but above all it corresponds to an area which has already rejected the price 5 times before. So will the price skyrocket this time, or will it end up being rejected again to go lower?
Figure 1 – Bitcoin Daily price chart
By re-entering the long range that lasted from June 2022 to November 2022, the price of BTC is signaling a potential reversal. In fact, when the price re-enters an old area, there is a good chance that its lower part will become a support, giving a greater chance to go back to test the upper part afterwards. And since new liquidity has been pushed up along the way with many short squeezes, an outbreak of the series from the top can also follow.
But before considering this, Bitcoin must manage to break its resistance in the middle of the range and then aim for the top of the range. Technically, BTC sparked a bullish target at $26,730 after the breakout of a Falling Wedge from above, but it is best to remain vigilant until $21,500 and the range is broken from above.
If the rejection at $21,500 were to be confirmed, a return to test the Tenkan Daily at $19,500 would be very likely. It is actually very far from the price, which is generally not the case. Still, it will be necessary to hold the bottom of the range in support, otherwise there will be a high risk of starting again towards a new low around $14,300.
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Ether (ETH) Heading For $1,650?
Regarding the price of Ether (ETH), it also broke a compression triangle from above. Thereby, a new bullish target has been triggered at $2,650 (the height of the pattern transferred to the place of the break).
Figure 2 – Ether Price Chart (H4)
We can therefore aim for this bullish target as long as the price remains above $1,400. Below is a risk to invalidate this pattern and move lower to retest the support at $1,000.
Here again we will have to go step by step because the underlying trend is still bearish. We also see that the $1,700 zone has been very difficult to break in the past as the price has been systematically rejected at this level.
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Conclusion of this technical analysis
Bitcoin and Ether will need to break their resistances in the next few days to seek their new short-term bullish targets. These scenarios are preferable as long as the price does not return below the supports identified earlier in this article.
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Chart source: TradingView
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