Bitcoin (BTC) and Ether (ETH) face large weekly close

Bitcoin (BTC) blocked by its Kijun Weekly

In a bullish rebound for 4 weeks, the price of Bitcoin (BTC) is now facing a significant resistance zone, corresponding to the weekly Kijun at $ 44,900 (purple curve).

The weekly Bitcoin chart (Weekly) by Tagado

The weekly Bitcoin chart (Weekly)

As we explained to you in our previous analysis, the Kijun Weekly is a curve that in the past acted as a support throughout the Bull Run. When the price drops below it is usually a bad sign since it acts as resistance in this case. To negate its role of resistance, buyers would need to gain the upper hand with a bullish comeback before Sunday night’s close.

If the price manages to close above the $ 44,900, then we will have confirmation of a breakout of the Kijun from above. On the other hand, if the price invalidates the resistance breakout, then we will most likely have a rejection signal, causing a very likely return to the top of the cloud towards $ 40,700.

If the weekly Kijun breaks, there is a good chance that the price will come back to test its All Time High (ATH), at $ 64,854 over the medium term.

Bitcoin (BTC) tests its daily support

The symmetrical widening pattern of troughs having been broken from the top during the previous days, we are now seeing a pull back on the top of this pattern. Is this a false breakout to trap buyers, or will we see a rebound to break the Kijun Weekly?

Bitcoin (BTC) daily chart by Tagado

Bitcoin (BTC) daily chart

As long as the price does not confirm a breakout of support at the close with a candle below the trendline high at $ 45,000, there is still a good chance that the price will rebound and then go back to test its Kijun Weekly.

However, be careful with a reinstatement of the pattern, which would very likely result in a return of the price on the Daily Kijun to $ 40,700. This zone corresponds perfectly to the cloud identified on the weekly chart. An important support therefore, which should in any case create a price reaction if it were to test this area again.

As you can see, the support at $ 45,000 will be decisive for the future, because if it gives in at the close, BTC should experience a stronger correction.

👉 Find our guide to buy Bitcoin (BTC)

Ether (ETH) still on the way to $ 3,600?

Ether (ETH), meanwhile, had managed to break its significant resistance at $ 3,055. Thus, we were able to determine his target AB = CD at $ 3,572.

Ether in Daily by Tagado

Ether in Daily

Following the breakout of its falling wedge, ETH should therefore seek its breakout target at $ 3,572. However, beware of the potential correction in Bitcoin, which could lead to a further retracement of Ether towards the top of its pattern and its Daily Kijun at $ 2,720.

As with BTC, as long as the price does not re-enter the pattern at the close, the upside scenario remains active. It is only if the price returns below the Kijun, that we will potentially see a trend reversal, with a price that could start falling again.

👉 Find our complete guide to buying Ether (ETH)

In conclusion

Bitcoin (BTC) is currently blocked by its weekly Kijun, which has resulted in the retracement of the price of Ether and other cryptocurrencies at the same time.

It will be necessary to monitor the price and its various support levels, because as long as these supports hold, then we remain in a simple phase of correction within an uptrend, the rise remains privileged.

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About the Author: Tagado

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