Bitcoin (BTC) has now been consolidating for over a month within a tidy. This flat consolidation continues and BTC appears to be leaning on support around $ 11,000.
Bollinger bands are getting closer, the volatility and volumes decrease : Bitcoin is in a consolidation in neutral trend and it will be necessary to be patient before knowing the outcome.
Decrease in volatility on Bitcoin
We will note all the same that the supports resist. The $ 11,000 pushes price back for now, but Bitcoin could easily continue its slow descent to $ 10,500.
As long as this key level of $ 10,500 is not crossed, there is no need to worry about long term BTC. This consolidation is necessary before being able to start again in trend.
Bitcoin battle for $ 11,500
Finally, it will be necessary to monitor the $ 11,500 level during the weekly closing of this Sunday, August 30. If it is lost, then Bitcoin will be likely to seek the lower $ 10,500 support. Otherwise, we can hope for a faster bullish recovery.
👉 Check out our guide to buying Bitcoin (BTC)
Typical case of a range phase, the usual indicators do not indicate a unanimous direction.
Momentum indicators are difficult to use. They continue to dive, but the RSI remains above its support levels.
Bitcoin and momentum indicators (Daily)
As long as the price does not lose its supports, see the momentum indicators plunge is not bad news if the RSI also remains above its supports. On the contrary, we could then see a hidden bullish divergence, but it is too early to confirm that.
Regarding the other indicators, it will be noted that the exponential moving averages 9 and 18 are flat and almost confused. This indicates a real slowing down of the uptrend and a return to a neutral trend.
Bearish crosses on Bitcoin (Daily)
Same observation on Ichimoku with a bearish cross between Tenkan and Kijun. The price is found under these two components which now serve as resistance.
While it is true that in a range, these indicators become less relevant, they still indicate a certain change of context. Bitcoin is now truly in a neutral and flat trend in Daily.
A probable rebound?
Contrasting with these new elements calling for caution in Daily, we find in H4 signs of hope.
Indeed, we can see a standard bullish divergence on the RSI and MACD. This indicates a slowing down of the downtrend and that a probable rebound is coming.
Bitcoin in H4
To validate this, BTC will need to break through a resistance slant, exit its bearish channel, and break above $ 11,500.
In this scenario, we can legitimately expect a significant rebound in Bitcoin. The objective would then be to find the top of the range and the $ 12,100. Simple rebound or bullish rally, it will depend once again if there is a breakout or rejection at $ 12,100 afterwards.
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Ether in an interesting configuration
Ether (ETH) bounced off its weekly pivot level of $ 370.
ETH in Weekly on its support
We can therefore expect a strong reaction on this support and a strong bullish comeback. However, the situation in the smaller units of time is more delicate.
Like Bitcoin, Ether is in the consolidation phase. The signals also remain mixed, and the outcome uncertain. We can still note that the $ 370 support is still perfectly held.
Ether in Daily and H4
So is the level 50 support on the RSI. Of large hidden bullish divergences could confirm and indicate a bullish continuation to come. After a pullback on such a medium, the logic goes for a rebound, which means that the Ether still remains in a configuration more conducive to a bullish recovery than Bitcoin.
This rebound hypothesis therefore remains to be favored, especially since in H4, we can observe a multitude of standard bullish divergences. The primary objective will therefore be to find the $ 415 in the next few hours, and why not, find a real uptrend.
👉 Follow our guide to buy Ether
Bitcoin and Ether continue to consolidate. A rebound is likely in the hours and days to come, with these cryptocurrencies hitting important supports. If Ether remains in a configuration conducive to a long-term bullish recovery, the situation is more delicate for Bitcoin, which could still continue its correction.
The outcome remains uncertain, the trend neutral and the signals mixed. We will have to be patient, wait for further confirmations and find a real trend.
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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.
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