Cryptocurrencies have experienced a fresh bout of weakness in recent hours. “We have to celebrate the exit from the consolidation zones for two of the most important: Bitcoin and Ethereum,” emphasizes Alexandre Barades, head of marketing research at IG France. Bitcoin has broken out of the bottom of its consolidation triangle that has existed since mid-May, while Ethereum has also emerged from the bottom of the ascending triangle-like technical figure. “This is a technical figure from which we theoretically exit from the top … except that this scenario turned out to be ‘too obvious’, and many observers foresaw this possibility. And, as often happens in the markets, when the configuration seems very obvious or even too noticeable, the opposite prevails, ”the expert emphasizes.
To break the triangle from above, he said, “you also need a catalyst, good news for Ethereum or cryptocurrencies in general.” However, yesterday, “the cryptocurrency media space was filled with information according to which the US Department of Justice was seeking a ransom related to the Colonial Pipeline hack, but especially that the FBI recovered the private key that allows the cryptocurrency wallet to be unlocked. used by hackers, ”says Alexander Barades.
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What does technical analysis say?
As for Bitcoin, Robert Haddad (Bank SBA) fears additional losses. “Dangerous breakage of the support. cluster $ 34,023 is paving the way for a fall to $ 27,069 (ie, a major Fibonacci retracement of 61.8% of the uptrend from the 2020 low to this year’s historic peak), ”the expert warns. Only income above $ 34,023 could be more optimistic about Bitcoin’s outlook, he said.
Due to the exits from the bottom of the triangle configurations on Ethereum and Bitcoin, caution is required. The two major cryptocurrencies are likely to remain under pressure. In this regard, our analysis can be found in Momentum, Capital technical analysis newsletter… For cryptocurrencies, you can also use the services of our partner Coinhouse (see link below).
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