Still below its $32,000 resistance, Bitcoin (BTC) is getting dangerously close to its support with a strong risk of a downward breakout. Are BTC and Ether (ETH) inevitably heading for new bearish targets?
BTC threatens to break its range from below
It’s been almost a month since the Bitcoin (BTC) price failed to rise above $32,000. A significant resistance level that unfortunately seems to be pushing the price towards a new low point. A new fall to come on the cryptocurrencies ?
Figure 1: Bitcoin price chart h4
If the $29,000 support breaks again at the close in the next few hours, there is a strong risk that the price will move back towards $25,960 (the height of the pattern at the point of breakout). It is therefore imperative that the price bounces off its support, as it has done systematically in the past.
Since the range is oriented upwards in an ascending wedge, there is nevertheless a greater chance of a downward break. To become bullish again in the short term, the price of BTC would have to break above its resistance at $32,000.
Ether (ETH) must hold support
As for the price of Ether (ETH), it must hold its horizontal support at $1,730 at the close (last low point), otherwise the fall could largely continue towards a new low point.
Figure 2: Ether price chart (h4)
As a reminder, Ether is still moving in a descending broadening wedge. A chartist pattern that normally ends with a bullish exit, but since Bitcoin seems bearish, there is a significant risk of seeing the ETH price retest the bottom of its pattern around $1,530. After that, a bounce is needed to avoid going much lower, towards the bearish breakout target at around $1,322.
In order to reverse this short-term downtrend, it would be necessary in any case to get back above $2,000, which seems to be quite compromised at the moment.
In conclusion
Cryptocurrencies are still bearish in the short term and will not reverse the trend until they break through their respective resistances. In the current context, a continuation of their decline seems to be preferred.
