After a nice bullish comeback in the previous weeks, Bitcoin (BTC) and Ether (ETH) are correcting. Will the crypto currencies resume their bullish targets, or is this the start of a new fall?
Bitcoin needs to bounce back to $43,000
After breaking its Daily triangle last week, the price of Bitcoin (BTC) was finally rejected on the $48,000 level. This then caused the price to return to the inside of the triangle, finally putting buyers back in doubt.
The Bitcoin Daily Chart
Despite an explosive bullish exit from this triangle, Bitcoin is currently on its daily Kijun. As a reminder, this Ichimoku curve is an important support in an uptrend. As long as the price remains above it at the close of the candle, the trend that has been in place for several weeks remains intact. So there is no real concern for the time being, as this pullback can be interpreted as the market taking a breath before a new impulse.
However, the next few days could be decisive, as in case of a break of the Kijun from below with confirmation, the cloud twist towards $40,000 could attract the price, this level being a very weak support space that could let the BTC move back towards a new low.
Ether is in pullback
After breaking out of its multi-week range, Ether (ETH) is back testing new support, supported by the Kijun.
Ether (ETH) Daily chart
In the next few days, Ether will need to hold the Kijun at $3,039. If the price holds at this level, it will be like the Bitcoin market breathing, before heading back to our targets at $3,768 and $4,571.
If the price were to fall back below its Kijun, however, the chances of a return to $2,800 would be high, with a risk of falling back through the cloud twist. The cloud then acts as resistance, making it more difficult for ETH to break out again.
In conclusion
After nice rallies in recent weeks, crypto currencies are correcting. Any market movement, whether bullish or bearish, at some point experiences a correction. As long as the price of cryptocurrencies remains above the Kijun Daily, however, bullish targets will remain active.
