Bitcoin must return to its range before the weekly close
After a very eventful week, the price of Bitcoin (BTC) is today trying to start rising again after a rebound on the $26,700. Back above the $30,000the BTC will he finally reinstate his weekly range in closing?
Figure 1: Weekly Bitcoin price chart (Weekly)
In our previous analysis, we recalled that the Bitcoin price was still moving within its weekly range, and this since the beginning of the year 2021. A range is a horizontal evolution of the price, which it is possible to frame in a rectangle. A range is said to be “broken” when the price breaks out of it during a fence. If the price comes out with a wick but the close eventually takes place with a reinstatement of it, then the range is not considered broken and then the possibility of bouncing down middle or even the top of the range then becomes highly probable.
During the last bounces on the bottom of this range at $30,000the price has always ended up going back inside the rectangle at the weekly close. The BTC then stabilized for several weeks, then systematically it ended up going back to the top of the range to make a new ATH. Despite a different and difficult economic context, with unpredictable events that precipitated the fall of cryptos, such as the collapse of the Terra project, this support could remain valid at the end of the week.
If there is a bounce off the support, then we could aim for the Tenkan toward $37,400even the Kijun toward $46,225. If the 30,000 give way on the close, the next weekly support levels are at $26,000then $22,800.
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Bitcoin breaks an h1 upside reversal pattern
While it was evolving in a very strong downtrend since the May 5the BTC manages for the moment to break through its descending widening pattern by the top. The break suggests a possible return to $35,000.
Figure 2: Bitcoin price chart (h1)
In theory, this type of chartist figures most often break from the top, with a minimum goal corresponding to the height of the latter at its exit, therefore to $35,000then its maximum aim can go to the first point of contact in the pattern here at $39,700. The price therefore broke an important downward trendline, went back above its cloud and the Tenkan as well as the Kijun. These curves are now acting as supports which could therefore help the price to go back towards $35,000.
Nevertheless, pay attention to the Chikou Span which does not yet validate the bullish exit, as well as the small orange trendline which could reject the price. It will therefore be decisive to see in the next few hours if the price manages to maintain its bullish breakout because in the event of reinstatementthere will unfortunately be a high probability of finding the bottom of the pattern at $25,000. The bearish scenario would be for this pattern to then break down, towards the $22,000.
Ether (ETH) must keep the $2,000
While he too evolves in a descending widening bevelIt will be necessary that Ether (ETH) maintains its support for $2,000 to then break its trendline upwards.
Figure 3: Ether price chart (h1)
If it manages to break its pattern from above, the price of ETH could go back towards the $2,686. For now, as long as the price stays below the cloud it seems complicated though. It will therefore absolutely be necessary to break the cloud on the rise because with a bearish rejection, the next support will be at $1,600a risk of breaking the bevel from below will follow with a target at $1,294.
The cryptocurrencies continue to decline after a difficult week. It will be necessary to fence inside the weekly range of BTC Sunday to try to come away with a rebound.
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Chart sources: TradingView
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