After a week of consolidation, Bitcoin (BTC) and Ether (ETH) are benefiting from various supports that should help them continue their rise. But what are the targets to aim for and what are the different scenarios to watch for? The point in this analysis.
Bitcoin (BTC) retests its high range
Since our analysis last week, the price of Bitcoin (BTC) has managed to break back through its resistance at $21,500 (the midpoint of the previous range that lasted from June to November 2022). Now the price is approaching $24,400, another important resistance that must be broken to give a strong reversal signal.
Since the beginning of the year, crypto-currencies have continued their meteoric rise without any real correction and have regained key levels in support. Bitcoin has managed to re-enter its range (blue rectangle) which was holding in December and which should now allow the price to rebound if it were to return to this level.
For the moment, all signals seem to be in the green with the 100 Moving Average and the Ichimoku system showing a bullish recovery. The price is indeed supported by the Tenkan, the Kijun and the cloud as the Chikou Span continues to run unimpeded.
Furthermore, a large triangle (Descending Bevel) has been broken to the upside, indicating the next target area of around $26,735, as mentioned in our previous analysis. While nothing is certain, the indicators are in any case quite optimistic. Let’s hope that the buying strength can be enough to break the range from above.
Regarding the potential bearish scenario, we will have to watch the price’s behaviour on the 24,400 dollars. Indeed, if the price were to break down the Tenkan at $22,000, then a return to the Kijun towards $20,300 would be preferred.
Ether (ETH) on its way to $2,000
As far as the Ether (ETH) price is concerned, a similar scenario to that of Bitcoin is underway. A Descending Bevel has been broken from above and now gives a bullish target at around $2,608. To reach this target, however, the $2,000 area will need to be broken again, which is both a psychological threshold and the top of the range that has lasted since June 2022.
To help the price break through this important area, the Tenkan and Kijun are accompanying the price and giving a bullish signal in addition to the 100 Moving Average. As long as the ETH manages to stay above $1,450 (middle of the range it managed to break through), then we can expect a strong probability of a return to test $2,000.
In the event that the price breaks back below its mid-range, then there is a good chance that this area will once again provide support. At that point, we will not be safe from a return to $1000.
Conclusion of this technical analysis
Bitcoin and Ether should retest their range tops in the next few days. Then, if they manage to break this level, then their prices should reach the targets determined by the Daily triangles. However, beware of possible rejections on these resistances, as any rise usually ends up in a correction.