Is the rebound in Bitcoin (BTC) and Ether (ETH) near?

Bitcoin (BTC) must bounce on its cloud

Still sharply bullish since the breakout of its long-standing Daily triangle, Bitcoin (BTC) has corrected in recent days towards the Ichimoku cloud. A fall that follows a new price record at $ 69,000, last resistance before $ 70,000.

The daily Bitcoin chart (Daily) by Tagado

Bitcoin Daily Chart (Daily)

Following the breakout of its Daily pattern, we previously identified a new bullish target for BTC towards $ 82,500, corresponding to the height of the triangle in yellow, carried over to the location of the breakout. If this objective is still relevant, it will obviously be necessary to keep the price above the cloud and the pattern. As a reminder, the cloud should act as a support and therefore help the price to rebound upwards.

If the price returns below the cloud, it will act as resistance, most likely causing BTC to return to the high trendline towards $ 46,000.

It is therefore important that Bitcoin manages to bounce back on its cloud in order to maintain its bullish momentum, which for the moment remains relevant, with prices only very rarely going in a straight line towards their objective.

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A symmetrical widening of hollow in H4

BTC has been trading above $ 55,000 for over a week now. A range is emerging, suggesting a chartist pattern rather favorable to a bullish return.

Bitcoin h4 chart by Tagado

Bitcoin H4 chart

We see it regularly on BTC, the symmetrical widening of hollows is a pattern that breaks quite often from the top. Thus, there would be a good chance that the price would rebound on the low trendline around $ 53,600, before finally heading back towards a breakout from the top.

We are then waiting to see if in the coming days the price will manage to start again towards the top of its pattern towards $ 70,000, before breaking it up. A break up would activate two targets, the first at $ 75,600 and the second at $ 82,500 (same target as with the daily pattern).

A breakout below will naturally cause the price on the Daily support stated higher at $ 46,000.

Ether (ETH) against its Daily support

The price of Ether is still moving above the Daily triangle that we identified in our previous analyzes. The price target at $ 5,940 therefore remains active.

Ether (ETH) chart in Daily by Tagado

Ether (ETH) chart in Daily

However, it will be necessary to preserve the support at $ 3,650, which corresponds both to the yellow trendline, but also to the cloud which should act as supports. If the price were to go back below these levels, this would invalidate the bullish objective since it would face significant resistance.

As long as the price remains above these important areas, the trend will therefore remain bullish, just like Bitcoin.

In conclusion

Bitcoin (BTC) and Ether (ETH) must imperatively bounce back on their respective supports in order to preserve the previously identified bullish objectives. The H4 pattern of BTC is one to watch since it could allow the price to finally set off again towards new price records.

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About the Author: Tagado

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Passionate about crypto-currencies since 2017 and a fervent defender of knowledge sharing, I am a YouTuber, crypto analyst and regular trader. Each week, my role is to make you aware of technical analysis by giving you my point of view on the evolution of Bitcoin and Ether prices, using my favorite indicators such as Ichimoku as well as chartist patterns.
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