This week, Bitcoin (BTC) and Ether (ETH) prices look set to go for new bullish targets. Will the crypto-currencies manage to break the next major resistances along the way? Find out in this new analysis.
Bitcoin (BTC) still under resistance
As we explained in last week’s analysis, the price of Bitcoin (BTC) has recently reached its target at $21,500 which is now an important resistance. The latter corresponds both to the middle of the previous 6-month range (price lateralization without volatility) that has been reinstated, but more importantly it corresponds to an area that has rejected the price 5 times before. So will the price manage to take off this time, or will it end up being rejected again to go lower?
By re-entering the long range that lasted from June 2022 to November 2022, the price of BTC is giving a signal of potential reversal. Indeed, when the price re-enters an old range, there is a strong chance that the lower part of the range will become a support, which gives a greater chance to test the upper part of the range. And since new liquidity has been recovered on the way with many short squeezes, then a breakout of the range from the top could also follow.
But before that can happen, Bitcoin will need to break through its mid-range resistance and then target the top of the range. Technically, BTC has triggered a bullish target at $26,730 following the break of a Descending Beam from above, but it is best to remain vigilant until the $21,500 and the range are broken from above.
If the rejection at $21,500 were to be confirmed, then there would be a strong likelihood of returning to test the Tenkan Daily at $19,500. Indeed, this is very far from the price, which is not usually the case. Still, the bottom of the range will have to be held as support, otherwise there will be a strong risk of going back to a new low around $14,300.
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Ether (ETH) on its way to $1,650?
Concerning the price of Ether (ETH), it also broke a compression triangle from above. Thus, a new bullish target was triggered at $2,650 (height of the pattern reported at the breakout point).
We can therefore target this bullish objective as long as the price remains above $1,400. Below this level, there is a risk of invalidating this pattern and moving lower to retest the $1,000 support.
To achieve this goal, we will need to watch the resistance levels at $2,000 and $2,250. If the price breaks through these levels, it indicates that there is a good probability that the price will continue to rise.
Here again, we will have to go step by step because the underlying trend is still bearish. We can also see that the $1700 area has been very difficult to break in the past as the price has systematically been rejected on this level.
Conclusion of this technical analysis
Bitcoin and Ether will need to break through their resistances in the next few days to go after their new short-term bullish targets. These scenarios should be favored as long as the price does not fall back below the supports identified earlier in this article.