This week Bitcoin (BTC) and Ether (ETH) have bounced off their mid-range positions, suggesting that the current rally is not yet over. Here are the different areas to watch in this new analysis.
Bitcoin (BTC) needs to break through $24,500 resistance
In our technical analysis last week, the price of Bitcoin (BTC) was heading back down to retest its mid-range at $21,000. We expected a correction to the 0.382 Fibonacci level, which BTC finally managed to hold at the close in a powerful surgical rebound that now suggests the possibility of a breakout of this price lateralization that has lasted since June 2022.
Figure 1 – Bitcoin Daily Price Chart
In the coming days, BTC will need to break the top of its range at $24,500 and the psychological resistance at $25,000 to get momentum towards the Ascending Beam breakout target at $26,734. To help it, it has support from the Tenkan, the Kijun and the Ichimoku cloud which represent important supports in this new short-term uptrend.
If this resistance is rejected again, the price of Bitcoin will return to the middle of its range at $21,500. Furthermore, this level must be held or risk a return to the $19,000 area for a more significant correction to the bottom of the range.
Ether (ETH): back to $2,000 soon
Concerning the price of Ether (ETH) its price has rebounded this week on the Ichimoku cloud towards $1,500, an area near the middle of the range. Since it has confirmed this former resistance area as support, it now seems very likely that the price will retest the top of the range at $2,000 in the coming days.
Figure 2 – Ether Price Chart (Daily)
We can therefore favour a return of the price to $2,000 as long as Ether remains above its mid-range, especially since here too the Tenkan, Kijun and Cloud are important supports that can help this rise. The long term objective of the break of this symmetrical triangle in yellow remains estimated at $2600 (which corresponds to the height of the triangle at its break).
In the opposite case, this zone would again become an important resistance with a risk that the price would go back towards the bottom of the range at 1,000 dollars. A very pessimistic scenario that for the moment seems to be getting further and further away.
Conclusion of this technical analysis
Bitcoin and Ether look like they are going to go back up with a strong rebound in the last few days in the middle of the range. A new breakout test is therefore to be favored, in order to most certainly go for the targets corresponding to the outcome of their respective triangles.
