In a range above $20,000, Bitcoin (BTC) is trying to rise and drag Ether (ETH) with it. What are the scenarios to watch for the next few days?
BTC tries to rebound towards $25,000
While Bitcoin and Ether hit our targets last week , cryptocurrencies rallied this week, with BTC price consolidating above $20,000 . A behavior that could suggest a bullish technical rebound for the next few days.
Figure 1: Bitcoin h4 price chart
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Following a reaction on the $18,000 area a few days ago, the price finally regained its psychological support at $20,000 . A level that we will now have to hold to aim for a bullish recovery towards $25,000.
Indeed, the price has been evolving for several days inside an inverted Shoulder-Head-Shoulder / or descending broadening wedge , reversal patterns whose exit most often takes place from above. The BTC is trying to break its lateral resistance from above, which could give this objective of $25,000 corresponding to the height of the Head of the pattern, reported at the place of the breakout.
However, it will be necessary to maintain the support at $19,500 because any fall below this zone would represent a risk of a bearish break in the direction of $15,000 .
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Ether (ETH) on its way to $1,500?
With a graph identical to that of Bitcoin , the price of Ether (ETH) seems to be taking an upward direction following the breakout of its pattern from above. Rise ahead for ETH ?
Figure 2: Ether price chart (h4)
With price closing above its h4 chart pattern, Ether price appears to be heading back towards the breakout target at $1,485 . An invalidation would only take place if the price were to test $900 again since there would then be a high probability of returning this time to $707 in the event of a downward break.
In conclusion
Cryptocurrencies are trying to break through their sideways resistance from above, which would trigger a bullish target for the short term. Despite this, it will nevertheless be necessary to avoid the false breakout and hold the $20,000 level on Bitcoin to hope to go back above $25,000 ( Kijun Daily ) and see more than just a technical rebound.