In a range above $20,000, Bitcoin (BTC) is trying to move higher and taking Ether (ETH) with it. What are the scenarios to watch for in the next few days
BTC tries to bounce back to $25,000
While Bitcoin and Ether hit our targets last week, the crypto currencies went back into range this week, with BTC consolidating above $20,000. A behavior that could suggest a bullish technical rebound for the next few days.
Figure 1: Bitcoin price chart h4
Following a reaction on the $18,000 area a few days ago, the price has finally regained its psychological support at $20,000. A level that we will now have to hold in order to target a bullish recovery towards $25,000.
Indeed, the price has been evolving for several days inside an inverted Shoulder-Head-Shoulder / or descending broadening bevel, reversal patterns whose exit is most often from the top. BTC is attempting to break its sideways resistance from above, which could give this $25,000 target corresponding to the height of the Head of the pattern, carried over to the breakout point.
However, it will be necessary to keep the support at $19,500 because any fall below this area would represent a risk of a bearish break towards $15,000.
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Ether (ETH) on its way to $1,500
With a chart identical to that of Bitcoin, the price of Ether (ETH) seems to be taking a bullish direction following the breakout of its pattern from the top. ETH to go up?
Figure 2: Ether (h4) price chart
With the price closing above its h4 hi-tech pattern, the price of Ether appears to be heading back towards the breakout target at $1,485. An invalidation would only occur if the price were to test $900 again as there would be a strong chance of a return to $707 on a downside breakout.
In conclusion
Crypto-currencies are trying to break through their sideways resistance from above, which would trigger a bullish target for the short term. Despite this, it will still be necessary to avoid the false breakout and hold the $20,000 level on Bitcoin to hope to get back above $25,000 (Kijun Daily) and see it as more than just a technical bounce.
