Bitcoin (BTC) and Ether (ETH) prices have surged this week. Hope for a short-term bullish recovery is back, but after such a strong rally, what scenarios can be seen? The essence of this new technical analysis of the cryptocurrency market.
Bitcoin (BTC) is facing a big wall of resistance
After a stable development for long weeks, the price of bitcoin (BTC) soared and recovered +12.5% of its value in one week. Now its price is trying to break through a significant resistance zone as it was the $19,000/$20,000 area that provided support for the long period from June to November 2022.
Rice. 1. Daily bitcoin price chart.
While this increase is encouraging and approaching key levels, Bitcoin is still in a downtrend with ever lower peaks. We also see that the price surgically stumbles both on the daily trend line and at the 0.618 Fibonacci level.
Moreover, this $19,000 zone is exactly the bottom of the old 6-month range. As a reminder, any broken support will become resistance, so it is likely that the price will reject in the next few days and correct, at least temporarily.
If the price were to confirm the range reintegration by doing a pullback at the top of the ichomoku cloud, for example, then there would be a good chance that the price would then aim for the weekly Kijun chart at 20,360 or even the middle of the daily range of $21,500. This growth should be done in stages in order to consolidate the various pillars and be able to accumulate as much liquidity as possible in order to break this very large wall of resistance.
Otherwise, if the price fails to hold inside the range, it should come back to test its support at $15,800. At that time, it will be necessary to hold this level, otherwise there will be great risks to see the price fall towards the Bear Flag target, which is still active at $14,300.
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Bitcoin (BTC) reversal pattern on h4?
By tying the local tops and bottoms together, the price of BTC shows us (on a lower time frame) a price that is getting more and more volatile within a chart pattern called the Rising Widening Wedge. This type of pattern is known to break below, so it is advised to remain vigilant as it coincides with a very important resistance level that is characteristic of the old daily range.
The probability of this pattern tends to push the price towards a breakout from below, around $14,500. So the question is, can buyers beat the odds and bring the price back above $20,000 with a target of $21,350? Answer in the coming days.
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Ether (ETH) should break its h4 resistance
As for the price of Ether (ETH), it is moving in a bullish channel and is currently under resistance. It will be interesting to watch this asset over the next few days to see if the price manages to break this pattern from above or if we are back at a local top of the market.
Figure 3 – Ethereum price chart (H4)
Here, the breakout target will be around $1,631. However, the pattern for Bitcoin is pretty bearish, be careful it doesn’t have a rejection otherwise Ethereum should follow towards $1050.
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Conclusion of this technical analysis
Bitcoin and Ethereum stall under significant resistance. We will have to break them in order to consider new bullish momentum in the coming days, otherwise look out for bearish targets that can quickly make us lose this good progress of the last few days.
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Chart source: TradingView
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