Still bearish, Bitcoin (BTC) and Ether (ETH) find themselves threatened by a further decline following a dangerous weekly close. Update on the different scenarios of the week.
At the start of the week, Bitcoin (BTC) is showing gloomy signs as it closed in the red on Sunday evening, well below the $ 32,200 threshold, which corresponded to the lowest candle body that served as support in January 2021.
If this Weekly closing seems to announce a further fall in the price, it is on the one hand because of a significant support at $ 32,200 which was pierced by the bottom, but also, because the Chikou Span (curve in white) has moved below price, now acting as a resistance that will keep the price from moving up.
Thus, the chart shows lower and lower candle closures, which further marks the already strong downtrend since prices moved below the Kijun (purple curve).
In this context and with an absence of institutional players, it seems unlikely that the price will manage to recover the upward trend in the medium term.
So it would be natural for price to come to the top of the cloud towards $ 27,900, the next major support given by the Ichimoku indicator.
Also, pay attention to the price which could be stuck under the cloud in the coming weeks.
The price of Bitcoin has been moving within this symmetrical widening pattern of yellow troughs for more than 40 days. As we have seen previously, the signals being more negative, a retest of the lower part of this pattern seems highly probable.
Very clearly on the chart, we can see that the Kijun at $ 33,400 and then the bottom of the cloud towards $ 33,700 are now acting as resistance. It therefore seems complicated to have a bullish return as long as the price does not return to the cloud.
In the event of a close in the cloud, there is hope of a return to the upside towards the top of the pattern at $43,100.
For now and as long as prices remain below these resistance levels, we will have a bearish target below $ 28,600, a drop that would correspond to the bottom of the pattern in yellow, then we will have to watch for a potential rebound or a potential downside breakout on this important support.
If the pattern breaks down, there will be a high risk of going for the next support (Kijun Weekly dish) at $ 25,900, or even the first target of the pattern breaking around $ 23,500.
As we discussed last week, the price of Ether is on its way to seek support at $1,800. This area is important because it corresponds to the lowest candle body encountered in recent weeks.
While this downward wedge is still relevant, support at $ 1,800 must hold to avoid a return to $1,660.
In the event of a strong rebound at this level and with the Ether succeeding in rising above its Tenkan at $2,230, then there will be chances of re-entering the cloud at $ 2,450.
Bitcoin (BTC) and Ether (ETH) still fail to rise again, signals come to rekindle the threat of a further decline to come. The week promises to be decisive for cryptocurrencies.