After a tumultuous week, Bitcoin (BTC) and Ethereum (ETH) are back up again and triggering new bullish targets. Is a new price explosion expected or is a correction close?
Bitcoin (BTC) hits its daily target
In our previous analyzes, we found that the price of Bitcoin (BTC) was in the range of $15,500 to $25,000 (i.e., price lateralization with no clear direction). After bouncing off the base of the Ichimoku cloud last week, it seemed highly likely that the price would start to rise again to finally break this resistance that has not crossed since August.
Rice. 1. Daily bitcoin price chart.
After this yellow triangle was broken in January 2023 and the price returned above Kijun (purple curve), we were able to set a new target at $26,734 for Bitcoin, and this is done as the price reached this level. Now the question is whether BTC manages to rise higher, or whether a corrective drop should be expected at this take profit level.
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Will Bitcoin Reach $30,000?
Thus, since we have reached our goal, we must now see what the smallest unit of time, 4 hours (h4), gives. Thus, we notice that the price has broken the important resistance of $25,000 corresponding to the top of the right angle descending extension pattern. Taking the high of this chart pattern and bringing it back to the breakout, we have our new bullish target, which was also triggered and confirmed by the breakout of the Chikou Span.
Figure 2 – Bitcoin price chart (h4)
Therefore, the probabilities give a good chance to continue this rise to about $31,620. However, there will be significant resistance at $28,600 along the way (the former support area has turned into resistance on the daily chart).
For each analysis, the probabilities are not certain, so it is important to plan for a reversal scenario. In this context, a price return below $22,800 would be very negative for the future as the cloud and Kijun will again act as resistances and hence could lead BTC to the next support at $20,000.
Is Ether (ETH) still on track for $2,000?
The price of the Ethereum cryptocurrency, Ether (ETH), continues to rise and is no longer that far from $2,000. Its daily range is between $1,000 and $2,000 and a priori the price should retest its upper range soon. As such, a $2,000 target seems quite plausible given that Bitcoin triggered a bullish target and that Ethereum is trying to break the bullish pattern on the h4 time unit. Let’s see if he can break it.
Figure 3 – Ethereum price chart (h4)
Similar to BTC, ETH price is testing a breakout of a new pattern from above, which could push the price higher in the coming days towards the $2,246 target (the height of the right-angle downward expansion carried over to its Exit). Of course, we will have to wait for a breakout at the close of this chart pattern to get a proper signal.
This target will then remain in place until the price returns below the cloud at $1,560, in which case there is a risk of testing the next support at $1,500.
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Conclusion of this technical analysis
So, can Bitcoin and Ethereum continue this explosive growth that started since the beginning of the year? The charts remain optimistic, but the sustainability of the new targets will depend primarily on the next economic news.
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Chart source: TradingView
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Passionate about cryptocurrencies since 2017 and an ardent advocate for knowledge sharing, I am a youtuber, crypto analyst and regular trader. Each week, my role is to introduce you to technical analysis, giving you my perspective on the price evolution of bitcoin and ether using my favorite indicators like Ichimoku as well as chart patterns.