While the international context is worrying, Bitcoin (BTC) and Ether (ETH) remain rather stable. However, after several weeks of range, a strong move in the major cryptocurrencies could occur in the coming days.
Bitcoin moves in a range
Despite a worrying geopolitical backdrop, the price of Bitcoin (BTC) is still trading in a range between $33,700 – $45,000 and is unable to take a clear direction.
The daily chart of Bitcoin (h4)
Indeed, for several weeks now, the price of Bitcoin has been moving horizontally, within a rectangle that connects the high and low points of the market. Within this flat market, we can nevertheless observe that the price has broken an important low trendline (in yellow), which previously served as support and which should now act as resistance.
As we can see on the chart, the BTC price has broken a triangle (chartist pattern) from below, which technically triggers a target at $31,712. So theoretically we should expect the price to return to the bottom of the range at a minimum and then see if the price manages to bounce off this important support at $34,000, to avoid going lower and potentially aim for a return to the top of the range.
If, against all odds, the price were to break the upper bound of the range, then we could however target a return of the price to $50,000.
Ether still under resistance
As far as the Ether (ETH) price is concerned, the scenario is exactly the same as for Bitcoin. Its price is moving within a range and has recently broken a triangle, which has triggered a price drop for several days.
The Ether (ETH) chart in h4
Following the break of the yellow pattern, a target at $2,086 has been triggered. Of course, the bottom of the range at $2,230 can still provide support for the price and allow for a rebound, which is what we will have to watch for. In any case, the cloud is in resistance and could well cause in the next few hours a new rejection of the price towards the bottom of the range.
If, however, the price manages to break back through the cloud in support, we could consider a break of the range from above and trigger a bullish target at $4,000.
In conclusion
Crypto-currencies have been stuck in a range for several weeks and are unable to take a clear direction. Unfortunately, the short term trend is bearish, with bearish targets activated following triangle breaks.
On the upside as well as the downside, the breakout of these ranges should trigger a volatile move in the next few days for cryptocurrencies.
