After a nice bullish comeback during the previous weeks, Bitcoin (BTC) and Ether (ETH) are correcting. Will cryptocurrencies resume their bullish targets, or is it the start of a new fall?
Bitcoin needs to bounce off $43,000
After breaking its Daily triangle last week, the price of Bitcoin (BTC) was finally rejected at the $48,000 level . Which then caused the price to move back inside the triangle, finally putting the doubt back into the buyers.
The daily chart of Bitcoin (Daily)
Despite an explosive bullish exit from the price in this triangle, Bitcoin currently finds itself on its daily Kijun . As a reminder, this Ichimoku curve is an important support in an uptrend. As long as the price remains above the closing candle, the trend that has been in place for several weeks remains preserved. No real worries therefore in the immediate future, this pullback can be interpreted as a breathing of the market before a new impulse.
The next few days, however, are likely to be decisive, as in the event of a breakout of the Kijun from below with confirmation, the twist of the cloud towards $40,000 could attract the price, this level being a very weak support space which could leave the BTC heading for a new low.
Ether is in pullback
After breaking its range of several weeks, the price of Ether (ETH) is returning to test its new support, reinforced by the Kijun .
The chart of Ether (ETH) in Daily
In the next few days, Ether will absolutely have to hold the Kijun at $3,039 . If the price holds on this level, it will then be just like on Bitcoin a breath of the market, before heading back towards our objectives at $3,768 then $ 4,571 .
In the event that the price were however to come back below its Kijun, the probabilities of a return to $2,800 would be strong, with a risk of going back through the twist of the cloud . The cloud then acting as resistance, it will become more difficult for ETH to recover.
In conclusion
After strong rises in recent weeks, cryptocurrencies are correcting. Any movement in the market, whether bullish or bearish, will at some point experience a correction . As long as the price of cryptocurrencies remains above the Kijun Daily, bullish targets will however remain active.
