Bitcoin (BTC) and Ether (ETH) are still under daily resistance with bearish targets for the medium term. Will the crypto-currencies manage to regain the upper part of their range? Here’s a look at what’s going on in this new analysis.
Bitcoin remains stuck at the bottom of the range
There is still no sign of a reversal on the chart of Bitcoin (BTC), which is still trading at the bottom of its range around $19,000.
For the past 2 weeks, it has not been able to go back up and it is likely to break through the support from below if it does not manage to quickly break back through its main short-term resistances.
Despite an attempt at a surge earlier in the week, the price eventually got rejected by the Kijun (purple curve) which represents important and relevant resistance on the chart as this level at $20,500 also corresponds to the bottom of the cloud, likely to reject the price.
Even if we were to retest the $20,500 level, the price would still be rejected. As a reminder, our analysis from last week does not change and as long as the price remains below the middle of the range and therefore below the cloud, the odds remain in favour of a continuation of the fall.
With the break of the yellow pattern, medium term targets have been triggered from a chartist point of view, with a return to focus on the $16,130 (Ascending Bevel) and then $14,400 (Bear Flag).
To reverse the short-term downtrend and invalidate these targets, Dow’s theory is that it would have to break back above the cloud and the previous high at $22,500 to make a new top higher than the previous high. If and only if the price were to break back through this level, then there is a chance that BTC could return to test its range top resistance at $24,500.
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Ether (ETH) back at the bottom of the range
The price of Ethereum (ETH) is also moving at the bottom of the range. It is no longer able to move back into the upper part of the range and is currently blocked by the Tenkan.
So watch out for a possible future drop in the price, since as with Bitcoin, we have a bearish target that was triggered by the breakout of the ascending wedge below.
For the moment, the target is therefore $762 and corresponds to the height of the wedge at its entry, carried over to the breakout point.
Of course, the support (bottom of the range) at $1,000 will have to be breached to get there, and only a return above the previous high point and therefore the cloud around $1,800 would invalidate this target and allow us to hope for a recovery towards the top of the range at $2,000.
The underlying trend therefore remains bearish, with liquidity to be found at the bottom of the range.
Conclusion of this technical analysis
Bitcoin and Ether are still stuck at the bottom of the range and are showing signs of running out of steam. A strong move should therefore not be long in coming, most likely in the direction of the current trend which remains largely bearish.