This week, the price of Bitcoin (BTC) and Ether (ETH) is still stable, but it is starting to give interesting signals for a return to volatility. Will it start again soon for another fall? Discover the different scenarios to watch out for.
Bitcoin (BTC) is still bearish towards USD 14,000
While stabilizing around $16,500 throughout the week, Bitcoin (BTC) price remains bearish with its charting target at $14,300 it had triggered by breaking a daily Bear Flag from below. The chart clearly shows us that the price is continuing its downtrend with highs still lower than the last one, and lows that are even lower as well.
Figure 1 – Bitcoin Daily price chart
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In Ichimoku reading, the price remains below key resistances marked by the Kijun (in purple) at $18,500 (bottom of the range in blue previously broken and which the price should reject in the event of a retest), and then the cloud remaining above the prices. We see that the Chikou Span (in white) has no obstacles and thus does not prevent the price from falling further.
The RSI then shows us two divergences. The first is bullish and confirmed, while the second (marked in yellow) shows us a possibility of a decline. In a bearish market with a target here set at $14,300, it is best to favor bearish signals and thus bearish divergence.
Especially since this type of signal does not necessarily mean that a movement will occurit may simply be price stabilizing before resuming its original direction, and this is what BTC price has been doing since the bullish divergence took shape.
Add to that the descending triangle that forms (dotted lines) where the direction of the breakout is very often from the bottom. In these circumstances, it seems more likely that the decline will continue. However, if price breaks its resistance at $17,300 and therefore takes the path of the bullish reversal, then it could move towards the Kijun at $18,500 before finally returning to the target at $14,300.
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Ether (ETH) back at its low $1,000 range soon?
Despite the ongoing bounce attempt, the price of Ether (ETH) remains below a key USD 1,250 resistance, which has pushed the price back many times in the past. As it stands, the price is also moving below the Kijun and below the cloud, showing that the trend remains clearly bearish. Again, the Chikou Span is under all resistance and could block prices in the event of an attempted bullish recovery.
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Figure 2 – Ether Price Chart (Daily)
As long as the price doesn’t reach the $1,700 level at the end, we won’t see a change in structure and the drop should therefore continue to the bottom of the range (blue rectangle) at $1,000, then to the Rising Wedge breakout target (yellow triangle) towards $762.
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Conclusion of this technical analysis
Bitcoin and Ether are stabilizing and preparing for the next step. With the current signals from the price and the various indicators, the decline does not seem to be over.
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Chart source: TradingView
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