Bitcoin (BTC) and Ether (ETH) are still under resistance

This week, Bitcoin (BTC) and Ether (ETH) failed to overcome significant resistance. Should we expect another drop in the coming days? Update on the targets and the different levels to be monitored.

The underlying trend remains bearish on Bitcoin (BTC)

This week, the price of Bitcoin (BTC) consolidated around $16,800 with still resistance: Tenkan, Kijun and then Cloud of the Ichimoku indicator in Daily. In this configuration, it still seems difficult to imagine a bullish rally as long as the price remains below all these curves, as they characterize potential levels of significant rejections.

Figure 1 – Bitcoin Daily price chart

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Until the price manages to re-enter the large blue rectangle that includes the previous consolidation (range), the price will remain under threat of falling towards our initial target of $14,300. This follows the breakout of the Bear Flag (shown in yellow in the figure above) and pierced from below last August. It had been subject to a confirmation withdrawal (retouching the lower limit) in September.

In addition, the previous decline that occurred at the beginning of November has been corrected by 50% (with a rejection precisely at this level, which also corresponds to the Kijun-Top of the cloud line), which is not a very good sign. Take effect, if the price were to break $15,600, a new Bear Flag would be activated with a target of $13,500.

Therefore, to invalidate the bearish scenario we are witnessing, the price would have to manage to go back above the cloud at $18,500 and above all go back to the upper part of the previous range around $22,000. to provide a trend reversal signal with a new high higher than the previous one. But we are still very far from that, and the probability is therefore currently on the downside.

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Ether (ETH) is following its way towards $1,000

Since our analysis last week, the price of Ether (ETH) has actually confirmed the breakout of the triangle that we had detected on the 4-hour timeframe. This yellow chart pattern is a continuation type triangular compression following a long downtrend. The exit from the bottom was the most likely thing that has been done and we can now very likely expect the price to return to the bottom of the rectangle at $1,080.

Ether price chart (H4) by Tagado

Figure 2 – Ether Price Chart (H4)

The target for this triangle is actually a bit lower towards $1,030, which would mean the range would be breached from below, with new downside targets to be determined if that happens.

To invalidate the decline that is underway, the price would need to retrace above $1,340 to finally break a larger triangle from above, with the help of the cloud, which would again become a key support.

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Conclusion of this technical analysis

Bitcoin and Ether maintain a still clearly bearish underlying trend and the price continues to develop towards the breakout targets triggered in our previous analysis.

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Chart source: TradingView

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