Will Bitcoin (BTC) break its pattern from the top?
While last week Bitcoin was about to go for the bottom of its symmetrical widening trough (yellow pattern), this week has turned out to be quite positive, with a surgical bounce off the lower trendline.
Bitcoin Daily Chart
As we mentioned earlier, this pattern usually ends with a bullish price exit. While the odds are in our favor for a bullish comeback in BTC, it will need to break above the daily Kijun at $61,000 and above the cloud.
If the price were to break the Kijun again, it would then test a break of the pattern whose high trendline at $71,000 is an important resistance. In the event that the widening wedge is breached from above, price would then move towards the small target at $78,000 (height of the start of the pattern carried over to the breakout point), or even the large target at $86,000 (height of the pattern at the rebound point, carried over to the breakout point). Indeed, there are two price targets when breaking such a pattern, the break of the first target generally dragging the price to the second.
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This pattern would be in line with the Daily Beam breakout signal that we had already spotted in our previous analysis, which gives a price target of around $82,500.
In the event that the price were to contradict the probabilities, a return to the bottom of the daily wedge at $50,000 would then be considered.
Ether (ETH) finally ready for $6,000?
After making a triple bounce precisely off its Daily cloud at $4,000, Ether could well be on the rise again in the coming days.
<img src=”https://yellowrocketagency.com/wp-content/uploads/2021/12/ethddd..png” alt=’Ether (ETH) Daily chart by Tagado” width=”1740″ height=”743″ /></p> <p><em>Ether (ETH) Daily chart</em></p> <p> </p> <p>While it absolutely had to bounce off its $4,000 support to remain bullish, we are now back to an ETH price around $4,600. It has managed to regain all its supports of the Ichimoku indicator, namely the Tenkan, the Kijun and the Cloud. It lacks the Chikou Span (in white) to emerge from price to give the green light for a break of this important resistance level.</p> <p>In fact, the target of this previously broken multi-month triangle in yellow from above is estimated at $5,940 and a break of the $4,800 resistance should help price to move back towards this objective.
Of course, if the price were to correct again, it would most likely return to the bottom of the daily pattern around $3,800.
The underlying trend remains bullish for Bitcoin (BTC) and Ether (ETH), which are nevertheless still moving below important resistance levels. Breaking these should allow the crypto-currencies to resume their path towards new price records.
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About the Author: Tagado
Passionate about crypto-currencies since 2017 and a strong advocate of knowledge sharing, I am a Youtuber, crypto analyst and regular trader. Every week, my role is to educate you on technical analysis by delivering my views on the price evolution of Bitcoin and Ether, using my favorite indicators such as Ichimoku as well as chartist patterns.
All articles by Tagado.