Bitcoin (BTC) and Ethereum (ETH) appear to be regaining a solid bullish momentum after recovering from a significant purchase zone. Cryptocurrencies must overcome their resistances in order to go beyond their current range. What are the possible scenarios?
Bitcoin is back at its barriers
The price of Bitcoin (BTC) has been oscillating horizontally between $18,600 and $25,000 since June, but has recently retraced sharply from the bottom of this range (blue rectangle). A +10% candle will burn in less than 24 hours today.
BTC was able to profit from a significant purchasing push on the lower end of the range with its comeback to the $18,600 mark. A strong level prompted a powerful comeback toward the following barrier at $20,500.
People who were entering the market in a short position have been caught up in the surge, and the additional liquidity should be able to support further price gains into the next resistance level, which is the midpoint of the range around $21,800.
Although the price is still firmly in a downturn over longer timescales, this level represents the price’s equilibrium in the current market.
A rising wedge (pattern in yellow) that was previously functioning as resistance has now been broken, and if the price were to retest this mid-range region, it may push the price in the direction of the breakout goal at $15,500. Exercise caution since it will be necessary for the BTC to break both the high trendline, which continues to be a key barrier for the price, and its range from the top in order to invalidate this bearish scenario.
Is Ethereum (ETH) headed towards $2,000?
Since June, the cost of Ethereum (ETH) has fluctuated between $1,000 and $2,000 as well. The cryptocurrency is, however, rebounding off the middle of its range in this instance, which may allow it to test the upper boundary once more in the upcoming days.
Taking liquidity in the center of the range should aid the price in achieving this, especially because a h4 triangle has also been broken from above. This will need climbing back above the Kijun and the cloud towards $1,730. with a $1.930 target.
On the other side, a return below $1,350 would be a strong negative signal since the price would drop down below both the broad yellow trendline and the midpoint of the range. These two levels represent significant pockets of liquidity that would give sellers confidence to re-test the $1,000 bottom limit of the range.