Home Economy Bitcoin : Are Bitcoin (BTC) and Ether about to pick up after consolidation? Bitcoin : Are Bitcoin (BTC) and Ether about to pick up after consolidation? August 24, 2020 Bitcoin (BTC) in full consolidation
After one strong bullish surge , it’s been a month since bitcoin (BTC) consolidates between $ 11,000 and $ 12,000.If for the moment, the trend remains bullish , we can consider a slowdown in the latter with the consolidation in progress.Bitcoin in full consolidation
Volatility is low, volumes decreasing and Bollinger bands are getting closer .This situation is typical of a range, and the overall configuration has remained rather neutral in recent days.
Only a break of one of the two terminals of the range would cause a resumption of volatility , and we must expect a powerful movement.
Check out our guide to buying Bitcoin (BTC) Important supports
Bitcoin can count on many media.First, on a weekly basis, the major support of $ 11,500 played its role well.The last candle closed just above this support so a rebound is possible.Bitcoin bounces off its $ 11,500 support
On a daily basis, the course can count on sa Kijun, also located at $ 11,500 , still held.The supports holding, we continue to place ourselves in an upward underlying trend , and an exit from the top is therefore more likely.
Bitcoin on its media in Daily
Note that the support slant of the bullish channel gave way, but without much conviction.As the volumes and the breakout candles remain very low, it is difficult to really take them into account.Uncertainty for the future
Long-term elements remain very positive , and I remain very optimistic at this level.Nevertheless, there is uncertainty about the situation in the short term.
Will we have a long consolidation and a return to the $ 10,500 lower support, or is Bitcoin already ready to break the $ 12,100 for soar to new heights ?
What is certain is that the course is still in its consolidation phase .The $ 12,100 level will be decisive and will give us direction.Bitcoin and its potential objectives
In case of a bullish breakout, we can expect a powerful resumption of the uptrend .The primary objective will be to achieve the $ 14,000 .
Otherwise, if the price is again rejected by the resistance at $ 12,100, we should expect long days of consolidation additional between $ 12,100 for the upper terminal and $ 11,000 / $ 10,500 for the lower terminal.Positive elements
A major new positive happens to be the state of momentum indicators , RSI and MACD.
Indeed, what changes compared to my last analysis is the RSI dive as the price continues to hold higher and higher.
By holding the $ 11,500 support and bouncing off its Kijun, Bitcoin could form a new hidden bullish divergence.Bitcoin and its potential hidden bullish divergence
If this is confirmed and the supports hold, then this would be a sign of bullish continuation .
Confirmation signal will be given at the break of $ 12,100 , but it is important to note that at the level of indicators, the situation is no longer identical to what we saw during the long consolidation from May to July 2020.
A bullish outcome in the next few days , with a rebound on support and a return of volatility when the $ 12,100 breakout therefore seems entirely plausible, and even to be favored.
Read our guide to buying Bitcoin (BTC) Short term
In H4, the situation is difficult to interpret.However, we can note a MACD bullish divergence as well as a double hollow figure.Bitcoin in H4
The descending bevel was also broken, so the theoretical objective would be a return to $ 12,450.
But this is only theoretical.The price must first cross the resistance offered by the SSB, then the critical level of $ 12,100 to watch closely.Ether (ETH) ready to go?
Ether is found in a configuration quite similar to Bitcoin.After a sharp rise: bearish divergence then correction.
ETH seems to have found support on its long-term pivot zone at $ 370-375 .Now that the price is above it will be the major long term support, and the long-term trend is clearly bullish .
Aether pullback on its Weekly stand
A pullback on this area like we had is therefore an excellent opportunity to get on the train, and it makes sense to see it as a reaction of the course.
In Daily, the situation is similar to BTC.We see the RSI and MACD indicators plunge, but the price rebounds on supports higher than the previous ones (level of $ 380 and Kijun Daily).
The hidden bullish divergences appear to materialize on the Aether as well, and there is a good chance that the fix is complete and the course starts again on a new bullish movement .Ether in Daily and H4
Note that in H4, the first elements of recovery are there .The descending wedge has been pierced, giving a theoretical prime target at $ 450, and a reversal pattern driven by bullish divergences has been confirmed.
Here too, the Ichimoku SSB H4 is blocking for now, but should give way quickly.We can therefore rather expect an end of correction and a bullish return for Ether.
Read our guide to buying Ether In conclusion
Bitcoin and Ether are not yet out of their consolidation zone, but positive signals are increasing.Hidden bullish divergences, recovery on small units of time and pullback on long-term supports …
If there are still a few confirmations missing, especially on BTC, it is likely to see the price return to a strong uptrend in the coming days.
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About the Author : Cryptanalyst Interested in the first place in cryptocurrencies, I then developed a passion for trading and technical analysis.Today I share my analyzes and knowledge on my Youtube channel as well as on Twitter.All articles from Cryptanalyst..
