Bitcoin (BTC) struggles to win back $ 50,000 and Ether locks in at $ 3,300

Kijun Weekly in support of BTC

As it closed above its Kijun Weekly at $ 46,900 last week, Bitcoin (BTC) is once again in the midst of testing this key level.

The weekly Bitcoin chart (Weekly) by Tagado

The weekly Bitcoin chart (Weekly)

During our previous analysis, we explained to you the important support role that Kijun Weekly plays. This curve which acts as a springboard during the bullrun must absolutely allow the price to rebound again towards its All Time High (ATH) in order to be able to resume a bullish direction.

If the Kijun breaks down, there is a risk that the price will come back to test the Tenkan or the top of the cloud, both around $ 40,500.

Bitcoin (BTC) is still testing its daily support

After breaking this symmetrical yellow trough widening pattern several weeks ago, Bitcoin found itself stuck below historic resistance at $ 49,500. A rejection which led to a return of the price on the Tenkan Daily, currently under retest.

Bitcoin (BTC) daily chart

Bitcoin (BTC) daily chart

As the trend is up again on the daily chart, the breakout of the yellow wedge should push the price towards $ 57,800 in the coming weeks (breakout target). This target corresponds to the height of the bevel, reported at the point of breakage.

As long as the $ 47,200 Tenkan and the $ 43,400 Kijun remain below price, by definition we remain in an uptrend and there is nothing to worry about. In an increase, the price regularly returns to test its Ichimoku curves, in order to allow the market to breathe.

A invalidation scenario will be activated if the price goes back below the Kijun Daily, with confirmation of a breakout, as this will mean a reinstatement of the wedge as well as a risk of a market reversal.

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Ether (ETH) still targets $ 3,600

Ether (ETH) remains very much above its descending wedge, previously broken from above. Unless invalidated, the AB = CD target is still around $ 3,600.

Ether in Daily by Tagado

Ether in Daily

Further away from reaching its breakout objective, the Aether is ranged around its daily Tenkan. While the target of $ 3,600 seems achievable, watch out for a red fence on the Tenkan at $ 3,163, which could send the price fetching the Kijun Daily to $ 2,909.

In any case, as long as the price does not return to its yellow pattern, the trend remains largely bullish for ETH, carried by its Tenkan, its Kijun as well as its lateral resistance at $ 2,670.

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In conclusion

Bitcoin (BTC) and Ether (ETH) face resistance. As long as the price does not re-enter their respective wedge, the trend remains clearly bullish, with several important supports. An invalidation signal will only be given in the event of reintegration of patterns.

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About the Author: Tagado

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