While consolidating below key levels for several days, Bitcoin (BTC) and Ethereum (ETH) still have bullish targets in progress. Will the crypto-currencies manage to break through their psychological resistance or is a sharp correction ahead?
Bitcoin (BTC) is holding its bullish trend
Since the beginning of the year, the price of bitcoin (BTC) has continued to rise and now appears to be on track to retest a former psychological support turned resistance at $30,000. Supported by the Tenkan, the Kijun and the Ichimoku cloud, BTC could finally manage to return above this area that it has not revisited since June 2022.
Of course, when retesting the $30,000 mark, a rejection of the price will be very likely as it is a round number and the past has shown that sellers position themselves heavily on these areas, but the uptrend that has been in place since January will not be challenged as long as the price remains above the Kijun and the Daily Cloud around $24,300.
Very often, it is as soon as this Kijun is broken to the downside that a sell signal is triggered. Until that happens, Bitcoin’s rise is the most likely outcome.
Bitcoin still on its way to $30,000
Since our last analysis, the price has been slowly moving higher towards the breakout target of the right-angle downward expansion pattern we identified. Again, on the h4 time unit, the trend remains clearly upward with the price supported by each of the Ichimoku indicator supports.
We had mentioned the high chance of rejection at $28,600 resistance, we are now stuck just below it. Thanks to the break of a continuation triangle on the lower timeframe (at h1), price should finally manage to break through this level from above in the coming hours.
Then, we could finally have the long-awaited retest of the $30,000 level, and then go for our target at $31,620 corresponding to the height of the pattern carried over to the location of its breakout.
This scenario could be invalidated if the price loses support at $26,600. We would then have a retest of $25,000 where we would have to bounce back or risk going back to $20,000 again.
Ether (ETH) still under resistance
The price of Ethereum’s cryptocurrency, Ether (ETH), is still stuck in its resistance around $1,800. Breaking this level will be necessary to finally get a price boost towards a new bullish target that will follow the break of this right-angle descending broadening pattern, the same as on Bitcoin.
If this resistance is broken, then the odds will be higher to visit the psychological threshold of $2,000. Then if the price manages to break back through this level, the ETH should head towards the pattern target of $2,289.
This scenario will be invalidated if the price falls back below $1,700. Indeed, this area currently represents an important support on which the price has consolidated for a long time. Losing this level would result in a return to the $1,500 level and would challenge the current uptrend with a bearish breakout of the Kijun Daily.
Conclusion of this technical analysis
So the targets still remain bullish for Bitcoin and Ether. It remains to be seen if they can break through their respective psychological resistances, which would be very good news for the future as they would act as support