This week, Bitcoin (BTC) and Ethereum (ETH) have soared. But will this rebound last or is the correction near? Discover the goals to watch for the main cryptocurrencies.
BTC is still potentially moving into a Bear Flag in Daily
Despite a significant increase in recent days, the Bitcoin rest under resistance. Its price remains under the flat SSB (top of the cloud), as well as under the high trend line of its ascending range.
Figure 2: Bitcoin Daily price chart
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To become truly bullish again in the short term, it will be necessary to go back above the Daily cloud at $25,200 then confirm this level in support. In the meantime, we remain in a potential Bear Flag with a goal around $14,232 if the price were to break the support at $20,500.
So are we going to invalidate this bearish pattern or is this the start of a bull trap ?
Figure 1: Bitcoin h4 price chart
The break of pattern h4 will set the tone for the next few days. If pierced from the top, then the rise could continue to the $31,000 approximately (height of the pattern at its exit, transferred to the place of the break). This objective would also correspond to a return to the level of Weekly Kijun.
Conversely, in the event of a breakout from below around the $20,500then there will be a high probability of seeing the price again around the $16,600which would also activate the daily Bear Flag target at $14,232.
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Ethereum (ETH) tests its resistance
Regarding the price of Ethereum (ETH), it finally touched our goal at $1,726 which had been activated in our previous analysis. So what are the next scenarios to watch out for?
Figure 3: Ether price chart (h4)
If the price has managed to start rising again, it will however be necessary to remain vigilant under this resistance at $1,800 since theETH now evolves within a Rising wedge. This type of pattern breaks more often at the bottom, which is why it is necessary to wait for the pattern to break to position itself.
We would rather be in a profit-taking zone here, with a potential return around the $1,200 (orange trendline). And this time, the risk would be to break through this support, with the price falling towards the $800.
In the event that the price breaks its resistance, then we could aim for a return around the $2,557. The breakout of the pattern and potential resistance should therefore be monitored.
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The Bitcoin and theEthereum are under resistance and we are rather in the profit taking zone following a nice surge in prices. We now have to wait for breakout confirmationsto know the direction the cryptos will take in the next few days.
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Chart sources: TradingView
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