Bitcoin (BTC) and Ether (ETH) are in a range and are currently closer to a breakout from the top. Will they manage to break through their resistance? A look at the scenarios to watch in the coming days
Bitcoin back to $50,000 soon
While it is still trading within its range of $33,700 to $45,000, signs of a bounce suggest a potential breakout of this Bitcoin (BTC) price lateralization from the top.
The Bitcoin Daily Chart
For several weeks, the price of BTC has failed to take a clear direction and remains contained within this blue rectangle. Despite a complicated geopolitical and economic context, crypto-currencies manage to keep a certain stability thanks to the support of the Tenkan and the Kijun.
In order to see Bitcoin’s value rise above $50,000, the price will first have to break through the $45,000 resistance, which has already caused BTC to move back towards the bottom of the range on multiple occasions. If the high trendline is broken, a bullish momentum will be triggered, with a price target around $55,835 (height of the ascending wedge in yellow, carried to the breakout point).
In the opposite case, if the price does not manage to break through this resistance and goes back below the cloud and the low trendline at $37,800, a new decline should be activated with a target at $31,000.
Ether is about to take a direction
The Ether (ETH) price is also moving within a rectangular range. A bullish target is triggered within this range, but will it be enough to trigger a bullish exit from this lateralization?
The Ether (ETH) chart in h4
During the previous days, ETH price had broken a descending broadening pattern (in yellow), a reversal chartist pattern, which gives an internal target around $3,124. Then, since the price should be supported by the Tenkan, Kijun and Cloud, there would be a strong chance to break this range from above.
But still, the price has to manage to bounce off the top of its pattern and precisely, to regain the Tenkan and Kijun as support. If the range is broken from above, the price could return to $4,571 in the next few days (range height carried over to the breakout point).
If despite everything the price fails to hold the cloud in support, the risks of going for the bottom of the range will be great, with also a possibility of going for a new low around $1,602.
In conclusion
For the past several days, crypto currencies have been bouncing towards the top of their range. Despite this, they have not yet managed to break through these resistances and so we must remain vigilant.
As always, it is better to wait for the price to break out of this long lateralization to get a breakout signal and know the new targets.
