End of Bear Market or Simple Bullish Correction?

Bitcoin (BTC) and Ether (ETH) prices have exploded this week. Hope for a short-term bullish recovery remains, but after such a sharp rise, what are the different scenarios to watch? The point of this new technical analysis of the cryptocurrency market.

Bitcoin (BTC) facing a major wall of resistance

After developing in a stable manner for long weeks, the price of Bitcoin (BTC) rose sharply and recovered +12.5% ​​of its value in one week. Now its price is trying to break through a significant resistance zone as it is the $19,000 / $20,000 area that provided support in the long range from June to November 2022.

Figure 1 – Bitcoin Daily price chart

Although this increase is encouraging and approaching key levels, Bitcoin is still in a downtrend with increasingly lower peaks. We see that too the price surgically stumbles both on the Daily trendline but also on the 0.618 Fibonacci level.

Moreover, this $19,000 area is exactly the bottom of the old 6-month range. As a reminder, any broken support will become resistance, so it is likely that price will see rejection in the next few days and correct, at least temporarily.

If the price were to confirm the reintegration of the range by, for example, performing a pullback at the top of the ichomku cloud, then there would be a high probability that the price would then seek the Kijun Weekly at 20,360 or even the middle from the daily range to $21,500. This increase must be done in stages in order to consolidate the various supports and to be able to accumulate as much liquidity as possible in order to break this very large wall of resistance.

In the opposite case, if the price does not stay within the range, it should return to test its support at $15,800. At that point, it will be imperative to hold this level, otherwise there will be high risks to see the price fall towards The Bear Flag target, which is still active at $14,300.

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A reversal pattern for Bitcoin (BTC) in h4?

By connecting local tops and bottoms together, the price of BTC shows us (in lower time frame) a price that is increasingly volatile inside a chart pattern called “ascending widening wedge”. This type of pattern is quite known to break from the bottom, so it is advisable to remain vigilant because it coincides with the very important level of resistance characterized by the old Daily range.

Ether price chart (H4) by Tagado

The odds of this pattern tend to push the price towards a breakout from below, towards around $14,500. So the question is, will the buyers be able to beat the odds and send the price back over $20,000 with that target of $21,350? Reply within the next few days.

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Ether (ETH) needs to break its resistance h4

Regarding the price of Ether (ETH), it is moving in a bullish channel and is currently below its resistance. It will be interesting to monitor this asset over the next few days to see if the price manages to break this pattern from the top or if we are once again at a local top of the market.

Ether price chart (H4) by Tagado

Figure 3 – Ether Price Chart (H4)

Here, the breakout target would be around $1,631. But the pattern is quite bearish on Bitcoin, make sure it doesn’t have a rejection or Ether should follow towards $1,050.

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Conclusion of this technical analysis

Bitcoin and Ether stall under significant resistance. We will have to break them to consider a new bullish impulse in the coming days, otherwise be aware of the bearish targets which could quickly make us lose this good progress of the last few days.

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Chart source: TradingView

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