Bitcoin (BTC) and Ether (ETH) are coming to the end of the compression of their daily chartist pattern. Volatility is reduced, suggesting an unwinding of the range in the next few days
Bitcoin is in a crucial area
The price of Bitcoin (BTC) has been stuck in a range between $33,700 and $45,000 for many weeks now. With the price currently stuck in the middle of the range, the next few days should be decisive.
The Bitcoin Daily Chart
Indeed, when an asset moves flat in the middle of a range, it is necessary to wait and see if it manages to break that level, or if it is eventually rejected towards its support. BTC is currently facing resistance from the cloud and will need to break through it on the upside to target the top of the range at $45,000 and then hope to break the daily triangle towards $55,800.
If the price confirms a rejection on the middle of the range, the support of the triangle at $38,000 will be revisited, with a risk of breakout from below and thus a return of the price to at least $35,000 (bottom of the range), or even to the bearish objective of the triangle at $31,149.
Ether must bounce back
Still flat within its range, the price of Ether (ETH) is on the upper part of a triangle, ready for a breakout in the coming days.
The Ether (ETH) chart in h4
After several weeks of sideways movement, the price is showing a compression of the ETH with lower and lower volatility. Usually, this type of setup ends up triggering a strong move in the direction of the triangle breakout.
Thus, it will be interesting to see in the coming days, if Ether manages to break its resistances from above (yellow trendline + cloud), or if it is rejected again towards the bottom of the triangle.
A breakout from the top of the pattern and cloud would see the price return to $3,700 (bullish triangle target), or even $4,571 (range breakout target). Conversely, a break of the triangle from below would result in a return to at least the bottom of the range at $2,300, then if the range breaks to the downside, the bearish target will be $1,602.
In conclusion
Crypto currencies are coming to the end of their compression, inside triangles clearly visible on the charts. In general, the break of a chartist pattern triggers a strong volatile movement, so the direction of the break will soon allow us to define a target to aim for the medium term.
