After a week of bullish momentum, Bitcoin (BTC) and Ether (ETH) are returning to test their respective supports. Will the major cryptocurrencies manage to get back towards their bullish target?

Bitcoin has finally triggered its bullish signal

The price of Bitcoin (BTC) had been moving horizontally for several weeks , inside a Daily triangle . We had been able to observe during our previous analysis that the compression was reducing, and that the price was about to enter a strong movement in the direction of the breakout of the pattern.

The daily chart of Bitcoin (Daily) by Tagado

The daily chart of Bitcoin (Daily)

This week, Bitcoin finally broke its triangle from above, activating a target at $55,832 . This corresponds to the height of the pattern at its entry, transferred to the place of the break. In the next few days, we should therefore review the return price on this target well above $50,000 .

Despite a nice bullish momentum triggered during the breakout, the price is currently performing a pull back on the top of its triangle, that is to say a test of the former resistance which should now act as support . The pattern on Ichimoku really shows a possibility for the price to rebound, since the Tenkan , the Kijun and the cloud are important levels of support, which could help the price to start higher.

In the event that despite everything the price goes back below the cloud at $39,000 , there would be a risk that the price will go back towards $31,350 , the objective of breaking the triangle from below.

Ether continues to rise

Following the breakout of the triangle that had been taking shape for several weeks, the price of Ether (ETH) is most certainly going up in the direction of $4,571 .

The chart of Ether (ETH) in Daily by Tagado

The chart of Ether (ETH) in Daily

As on Bitcoin , we had observed that the price of Ether was evolving within a compression triangle and we had therefore been able to anticipate the high volatility that followed.

Thus, the objective of breaking the triangle at $3,768 is still in progress and following the breakout of the range this week, the objective can be extended to  $4,571  (corresponding to the height of the range, postponed to its exit) .

If despite this bullish signal , ETH fails to maintain its Kijun support at $2,900 , there will be a strong risk of the price returning to $2,500 or even to the bottom of the range at $2,200 .

In conclusion

Cryptocurrencies take advantage of beautiful bullish configurations to continue their momentum. The price is however in pullback and will absolutely have to keep its important supports to achieve the objectives set.

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