An encouraging close for Bitcoin (BTC)
The weekly chart of Bitcoin (Weekly)
After bouncing off the $30,000 support early last week, prices headed back towards the weekly Tenkan at $35,000, broken to the upside by a bullish downside candle. If the move in Bitcoin continues, prices should return to test the Tenkan flat at $44,100 or even the weekly Kijun flat at $46,800.
A bounce right on the bottom of the symmetrical trough widening pattern
Bitcoin is still in this yellow symmetrical trough widening pattern and as we mentioned last week, its lower trendline has been tested, providing support for BTC once again.
Bitcoin (BTC) Daily Chart
As Bitcoin flirted with its Daily resistance at $35,000, a violent Short Squeeze broke this key level overnight, amid very optimistic rumors about Amazon and a possible use of crypto-currencies on their platforms. A rise of over 16% in 24 hours that confirmed the price’s inclusion in the Ichimoku indicator cloud.
Despite this strong rise, nothing is certain for all that. Indeed, the volumes remain very low on the market and big resistances still come to slow down the price.
This is particularly the case of the Explosive Moving Average 200 (EMA20) which can still act as a resistance and reject the price as it did last June. If the price closes above it, it will provide support and should trigger a new rise towards the $40,600 range. The next resistance is then on the upper trendline of the yellow pattern, around $44,000.
Conversely, if Bitcoin suffers a rejection, it could be the next move up.and on its 200 EMA or the top of its range, there will be a good chance that the price will go back to test its new support at $35,000, or even the bottom of the range at $30,000 if the support gives way.
Read our guide to buying Bitcoin (BTC)
Ether (ETH) breaks its downward sloping wedge
On the daily chart of Ether (ETH), we can see a perfect bounce off the bottom of the range. The price has to manage to break through the Kijun-SSB line at $2,300, which is also the mid-range level.
Ether in Daily (daily)
If Ether manages to break back above $2,300 on the close, there is a high probability that the price will hit the yellow downtrend target at $2,648 and then the top of the range.
In case the price is rejected on the middle of the range, then the bottom of the range at $1,780 will be tested again, with a risk of a breakout from below.
Find our complete guide to buying Ether (ETH)
Bitcoin (BTC) and Ether (ETH) are still in the same range since the beginning of the summer. As long as these crypto-currencies do not break their range-defined resistances, then the risk of rejection remains and thus we can still hardly talk about a bullish reversal.
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