After an eventful week, Bitcoin (BTC) and Ether (ETH) are back on the rise and triggering new bullish targets. Is a new price explosion in the offing or is a correction near?
Bitcoin (BTC) reaches daily target
In our previous analysis, we found that the price of Bitcoin (BTC) was contained within a range between $15,500 and $25,000 (i.e. a lateralization of the price without clear direction). After bouncing off the bottom of the Ichimoku cloud last week, it seemed very likely that the price would go back up to finally break this resistance, which had not been crossed since August.
Figure 1 – Bitcoin Daily Price Chart
Following the breakout of this yellow triangle in January 2023 and the return of the price above the Kijun (purple line), we were able to set a new target of $26,734 for Bitcoin and it has reached that level. Now the question is whether BTC will manage to go higher, or whether a corrective fall is expected on this profit taking level.
Will Bitcoin manage to get back above $30,000?
Since we have reached our goal, we must now look at the lower time unit, the 4-hour time unit (h4). Thus, we notice that the price has broken through the important resistance of $25,000 corresponding to the upper part of a right-angled descending broadening pattern. Taking the height of this chartist pattern and relating it to its breakout, we therefore get our new bullish target which was triggered and confirmed by the breakout of the Chikou Span as well.
Figure 2 – Bitcoin Price Chart (h4)
So the odds are in favor of a continued rise to around $31,620. On the way, however, there will be significant resistance to watch at $28,600 (former support area turned resistance on the daily chart).
As with any analysis, probabilities are not certainties, so it is important to plan for an invalidation scenario. In this context, a return of the price below $22,800 would be quite negative for the continuation given that the cloud and Kijun will again act as resistance and that would therefore risk dragging BTC to its next support at $20,000.
Ether (ETH) still on its way to $2,000?
The price of the Ethereum cryptocurrency, Ether (ETH), continues to rise and is not really far from $2,000 anymore. Its daily range is contained between $1,000 and $2,000 and a priori the price should soon retest its range top. The target of $2,000 seems quite likely, knowing that Bitcoin has triggered a bullish target and Ether is trying to break a bullish pattern on the h4 time unit. It remains to be seen if it can break it.
Figure 3 – Ether Price Chart (h4)
Like BTC, the price of ETH is testing the breakout of a new pattern from the top which could give way to a price increase in the coming days towards the target at $2,246 (height of the descending right-angle widening carried to its exit). Of course, we will have to wait for the closing break of this figure to get a relevant signal.
After that, this target will remain valid as long as the price does not break back below the cloud at $1,560, in which case there will be a risk of retesting the next support at $1,500.
Conclusion of this technical analysis
So will Bitcoin and Ether manage to continue the explosive rise they’ve been on since the beginning of the year? The charts remain bullish, but the sustainability of the new targets will depend mostly on the next economic news
