Still in an uptrend, Bitcoin (BTC) and Ether (ETH) are starting to show signs of uncertainty. What are the scenarios to watch for in the coming days? Can the uptrend continue
Bitcoin on its way to $46,600
This week, the price of Bitcoin (BTC) has held above $40,000, setting up a new short-term bullish momentum following the breakout of the yellow descending wedge. Will BTC be able to reach its target
?
Figure 1: The Bitcoin chart (h4)
In chartism, any pattern breakout triggers a target. On the h4 chart of Bitcoin, we can see that the price has broken two patterns in the last few days. The first one is the descending wedge in yellow, giving high probability to go back for the first contact point on the top of the pattern, around $46,667. We then notice a symmetrical widening pattern of the orange dip, which generally gives the signal of a market reversal and therefore a future rise.
We will then have to watch the price evolution within this pattern, as its breakout will give us the price direction for the next few days. If at the moment there is a better chance that the price will break out from the top towards $46,667, the Tenkan and the Kijun remain important resistances to regain as support in order to go back up.
Note that the target of the yellow bevel is exactly the same as the orange pattern, so we have a double target which further improves the chances of returning to this price level. Despite this, if the price were to break its widening pattern from below, a return to $35,126 would be in order, which would consequently invalidate the bevel breakout target.
Ether remains bullish
Despite a price correction in recent days, the price of Ether (ETH) remains in an uptrend as it is not breaking the Ichimoku cloud and making new lows lower than previous ones.
Figure 2: Ether (ETH) Daily chart
Following the breakout of the yellow triangle built during the previous months, we were able to determine a bullish target for Ether at $4,625 (highest contact point inside the pattern).
Now a new pattern has emerged, the orange bullish channel. If for the moment the price seems to want to bounce on its support at $3,000 (also corresponding to the cloud), it will be necessary to regain the Kijun as support. It is currently acting as resistance and would unfortunately risk dragging the price towards $2,000 in the event of a break of the pattern from below.
It is therefore important to continue this trend, which could this time take us towards $5,000 in the next few weeks if it continues (height of the channel carried over to the breakout point).
In conclusion
Bitcoin and Ether remain in a bullish configuration for the time being, despite signs of uncertainty. Nothing to worry about as long as the price of crypto-currencies remains within the patterns we have identified. The market rarely goes in a straight line, so these corrections remain healthy, but it will be imperative to bounce back and maintain this momentum in the coming days.
