The next few hours could be crucial for Bitcoin (BTC) and Ether (ETH). After several days of bullishness, will the major crypto-currencies manage to break through their next resistance?
Bitcoin ready to take off
Since last week, the price of Bitcoin (BTC) has been gradually moving towards the top of its daily triangle, which also corresponds to the top of the range established several months ago. A break of this resistance could lead to a return of the price above $50,000.
The Bitcoin Daily Chart
After a rather difficult start to the year for crypto-currencies, Bitcoin is finally picking up steam, with a nice rally in its price towards its resistance at $44,500. On the Ichimoku side, the indicator is showing some improvement, with the cloud moving back up, the price accompanied by the Tenkan and Kijun in support, as well as the Chikou Span trying to break out of its last obstacles.
As a reminder, if the price manages to break back above this price level, we could see a bullish impulse towards $55,832 or so. It must be said that since January, the $44,500 level has been a clear barrier to the rise of Bitcoin. This time, it will be necessary to break through this threshold to truly break out of this range.
There are still a lot of supports to be broken on the downside to trigger the bearish scenario. Thus, if BTC were to be rejected on this resistance, it would most certainly head back towards the bottom of its pattern at $39,000, with a strong risk of a breakout from the bottom towards $31,350.
Ether retests top of range
After breaking out of its daily triangle last week, the price of Ether (ETH) has finally broken out of its range as well
The Ether (ETH) Daily chart
Since January, the price of Ether was also compressing more and more inside its triangle and we had anticipated in our previous analysis that high volatility would follow.
Technically, the objective of breaking the triangle at $3,768 is now activated. However, we will have to remain vigilant once the price reaches the top of its range, as resistance at $3,200 remains important. It had already rejected the price on multiple occasions in the past. If it is broken, an even higher target at $4,571 will be triggered (corresponding to the height of the range, carried over to its exit).
In the event that the ETH is rejected once again on the top of its range, there will however be a risk of the price returning to its support at $2,500, or even to the bottom of its range at $2,200.
In conclusion
The majority of crypto currencies are back on the rise this week. However, they are coming in under resistance and what happens next will be determined by the price behavior at the top of their respective ranges.
