Bitcoin (BTC) and Ether (ETH) prices are set to seek new bullish targets this week. Will cryptocurrencies break the next major resistance on the way? The point in this new analysis.
Bitcoin (BTC) is still at resistance
As we explained in last week’s analysis, the price of bitcoin (BTC) recently reached its target of $21,500. significant resistance. The latter corresponds both to the middle of the reintegrated 6-month previous range (lateralization without price volatility), but above all to the area that gave up 5 times before the price. So will the price manage to go higher this time or will it be rejected again to go lower?
Figure 1 – Bitcoin Daily price chart
By re-entering the long range from June 2022 to November 2022, BTC price is signaling a potential reversal. Indeed, when the price re-enters the old range, there is a good chance that the lower part of it will become a support, giving it the chance to come back to test the upper part later. And as new liquidity accumulates along the way with many short squeezes, a breakout of the range above may follow.
But before considering this, Bitcoin will have to manage to break the resistance in the middle of the range and then aim for the top of the range. Technically, BTC led to a bullish target at $26,730 after the Falling Wedge broke above, but it is better to stay alert until $21,500 and the range broke above.
If the rejection at $21,500 were confirmed, it would be more likely to return to test the Tenkan Daily at $19,500. Indeed, it is far from the price, not at all. Still, the bottom of the range will need to be held at support, otherwise the risk of a resumption towards a new low around $14,300 will be strong.
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Is Ether (ETH) Heading For $1,650?
As for the price of Ether (ETH), it also broke the compression triangle from above. So, A new bullish target has been launched at $2,650 (the height of the pattern is moved to the break point).
Figure 2 – Ether price chart (H4)
Therefore, we can achieve this bullish target as long as the price remains above $1,400. There is a risk of a downside move to invalidate this pattern and retest support at the $1,000 level.
Here again we will have to go step by step as the main trend is still down. We also see that the $1700 zone has been very difficult to break in the past as the price has been systematically rejected at this level.
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The result of this technical analysis
Bitcoin and Ether will need to break their resistance in the next few days in search of new short-term bullish targets. These scenarios should be preferred as long as the price does not return below the supports identified at the beginning of this article.
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Chart source: TradingView
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