Bitcoin (BTC) and Ether (ETH) have been falling and are getting dangerously close to key levels that should not be breached. What are the scenarios to watch out for
BTC is testing the breakout of its triangle
This week, the BTC price finally broke down and is now moving inside a continuation triangle. If in general this type of pattern breaks in the direction of the previous trend, should we expect a fall from below in the coming hours or days?
Figure 1: Bitcoin price chart h4
On the h4 chart, the price of BTC has settled into a compression for several days, in which the price is becoming less volatile. If the price were to give up its sideways support at $19,000, there would be a high probability that Bitcoin would go back to look for the $15,577 level or so (target to be adjusted according to the location of the breakout, which corresponds to the height of the triangle).
However, as the price has bounced off its lower trendline, there is still a chance that the price will once again manage to move back towards the top of the triangle. In this hypothesis, as the compression is coming to an end, it would be possible for the price to break through its resistance from above, with a bullish target at around $25,697.
It will therefore be essential to hold the price above $19,000 to preserve the possibility of resuming an upward trend in this market.
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Ether (ETH) back to $800
Like Bitcoin, this week the price of Ether (ETH) is trying to bounce off its sideways support and avoid the bearish breakout. However, this type of chartist pattern is more likely to break to the downside.
Figure 2: Ether price chart (h4)
The $1,000 level will therefore be something to watch in the coming days because if it were to break, we would have a very strong chance of having a new fall towards the $776 level (height of the triangle at the breakout point). It will then be necessary to hold this level at the close and move back towards the upper limit of this triangular range, to try to break the resistance at $1,300.
If the price manages to break out of this pattern despite the bearish probabilities, we could then aim for a return to $1,723.
In conclusion
Bitcoin and Ethereum are both compressing within bearish patterns and may well break lower in the coming days. So be careful with this market which is not really showing any rebound signals yet.
