After many attempts, Bitcoin (BTC) and Ether (ETH) still fail to turn the corner. However, the major crypto-currencies are at the end of their compression, suggesting a strong move for the next few days.
Bitcoin fails to stay above $40,000
For several months, the range has continued on cryptocurrencies. The price of Bitcoin (BTC) is stuck below $40,000 and every time it tries to break it, it fails to break back. After 5 bounces on its sideways support, BTC absolutely must take off to avoid entering a new phase of fall.
Figure 1: Bitcoin price chart (h4)
After regaining its h4 Kijun this week at around $39,252, Bitcoin was finally rejected by the Ichimoku cloud, resulting in a further break of the Kijun. In this difficult context, the scenario of a break of the symmetrical widening pattern from the bottom cannot be excluded despite the rather bullish probability of breaking this type of pattern from the top.
As a reminder, in case of a break of its lower trendline, the price would most likely go back towards $34,000. In the opposite case, if the price manages to break back through its upward cloud, the hope of a return to the top of the pattern at $44,000 will be allowed. The best thing to do is to wait for the break of one of the two trendlines before buying or selling.
Ether at end of compression
The price of Ether (ETH) has still not managed to regain the $3,000 mark in support. In the short term, however, it is coming to the end of the compression of a Descending Bevel h4, which suggests a strong move ahead.
Figure 2: Ether (ETH) price chart at h4
In general, this type of pattern more often breaks from the top, with a target corresponding to the first contact point on the upper part of the triangle. Thus, if this chartist pattern breaks from the top, we could see the price move back towards $3,500 in the next few days. To get there, however, Ether will have to break its cloud which is currently acting as resistance.
If the wedge breaks from below, a new fall will be triggered, with a target of $2,390 (the height of the triangle at the point of breakout).
In conclusion
Bitcoin and Ether are still struggling to break back above their resistance. Despite this, they are coming to the end of their pattern building which should trigger high volatility in the coming days.
