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
👉 Buy crypto with the reference broker eToro
The platform that simplifies trading
Buy crypto in minutes
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.
👉 Find our selection of the best sites to buy Bitcoin
No. 1 exchange in the world – Regulated in France
10% off your fees with code SWULQ98B 🔥
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.
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.
👉 Find our explanatory guide to buying Ether
No. 1 exchange in the world – Regulated in France
-10% discount on fees with code SVULQ98B 🔥
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.
💡 Get access to our premium group consisting of Vincent Gane and our experts in fundamental and on-chain analysis. They provide you with daily information and exclusive analysis on the crypto market to optimize your knowledge!
Advance the world of cryptocurrencies with Cryptoast experts 📘
Chart source: TradingView
Receive a roundup of crypto news every Monday via email 👌
What you need to know about affiliate links. This page presents assets, products or services related to investments. Some links in this article are affiliate. This means that if you buy a product or register on a website from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damages or losses caused after the use of any product or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial means. This article does not constitute investment advice.
AMF recommendations. High returns are not guaranteed, a product with high return potential entails high risk. This risk-taking must be in line with your project, your investment horizon and your possibility of losing part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To continue, please read our financial situation, media transparency and legal notices pages.